BRIC Funds Continue to Outshine Emerging Funds

BRIC Funds Continue to Outshine Emerging Market Funds, Says HSBC

For investors who are looking to tap into high growth opportunities, BRIC funds are quickly becoming the rising star of the equities market, according to the latest information from HSBC Global Asset Management.

In the latest edition of Investment Intelligence, BRIC funds have shown to generate an annualised return of 23.4% over the past five years in comparison to 16.9% for emerging market equities over the same period of time1.

Glen Tonks, Manager Private Clients, at HSBC says: “HSBC’s latest Investment Intelligence has shown that for investors who are seeking aggressive growth opportunities, BRIC funds are certainly worth looking at in more detail as, on average, they have been outperforming emerging market equities for the past five years now.

“As money moves from developed to higher growth emerging markets, BRIC markets could benefit. Particularly as the debt crisis in Europe intensifies, it is even more likely that the divergence in growth outlook between developed and the emerging markets will become even more pronounced,” continues Tonks.

“Not only were BRIC countries the first to emerge from the global financial crisis, but they are also currently contributing to almost 50% of global growth. Much of this can be put down to their hugely favourable demographics, the newly emerging middle class, a low penetration of consumer goods and services and the fact that they have signalled significant future investment in infrastructure2,” Tonks continues.

“The BRIC markets, Brazil and Russia in particular, account for the lion’s share of global commodities. As commodity demand and prices are expected to rise as manufacturing recovers, the BRIC markets are set to benefit,” concludes Tonks.

ENDS

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