Perhaps the most important area for long-term growth investors is emerging markets, because populations and wealth in these parts of the world are growing as the countries, economies and markets develop. These markets are also less researched than developed markets, so should give active managers more opportunities to find good companies. But along with growth potential comes a lot of risk, as these areas are often less politically stable and have lower levels of corporate governance than developed economies. So funds focused on these areas are better suited to investors with long term investment horizons and high-risk appetites.
JPMorgan Emerging Markets Investment Trust (JMG)
Austin Forey has managed JPMorgan Emerging Markets Investment Trust since 1994 and is supported by a large team of analysts. They aim to invest in quality stocks with sustainable growth potential that are attractively valued. These include fast-growing and profitable companies that create value but require very little capital, such as consumer brands, software, social media and e-commerce companies.