Emerging markets and Asian equities are good long term performers
Zenith has released its latest sector report: International Shares – Emerging Markets & Asian Equities
Zenith Investment Partners says the probability of emerging markets producing positive returns significantly increases over longer investment horizons, with Zenith’s rated emerging markets funds, on average, outperforming a passive exposure over the prior 20-year period.
In its latest sector report: International Shares – Emerging Markets & Asian Equities, it says: “Over the 12 months to 30 September 2023, emerging markets (as represented by the MSCI Emerging Markets Index $A) generated a return of 11.3 per cent, while Zenith’s rated emerging markets funds outperformed, delivering an average return of 12.0 per cent (after fees).
“Over the same period, Asia ex-Japan (as represented by the MSCI All Country Asia ex-Japan Index $A) generated a return of 10.5 per cent, while Zenith’s rated Asia ex- Japan funds delivered an average return of 11.2 per cent (after fees), outperforming the index.”
The report also compares betting on the Melbourne cup, versus investing in emerging markets. It notes, over the history of the Melbourne Cup, the shortest odds horse lost 81 per cent of the time. In contrast, emerging markets produced a capital loss outcome in only 34 per cent of years.
