Powered by MOMENTUM MEDIA
lawyers weekly logo
Advertisement
News
23 July 2025 by Miranda Brownlee

ASIC told to tighten private credit rules with funds ‘hiding risks and fees’

Woodbridge Capital has urged ASIC to strengthen the regulations for private credit funds with some managers “taking advantage of the lack of rules” ...
icon

Revised CC Capital deal 'still attractive' for Insignia shareholders: Morningstar

The revised deal between Insignia Financial and CC Capital is still attractive and adequately compensates shareholders ...

icon

Traditional investment no longer effective as population ages

T. Rowe Price Group VP said investment strategies must adapt to an ageing population, as Australians outlive their ...

icon

Family offices rethinking strategies for uncertain markets

Family offices have embraced active management and private equity as they rebuild resilient portfolios for the ...

icon

SG Hiscock bullish on gold ahead of volatile earnings season

The fund manager remains positive on the outlook for gold and believes ongoing market volatility will provide ...

icon

Binance ANZ welcomes new general manager

The world’s largest cryptocurrency exchange has appointed a seasoned fintech executive to lead its next phase of growth ...

VIEW ALL

Beware indirect exposure to emerging markets

  •  
By
  •  
4 minute read

Investors need be aware of their diversification when allocating to Asian equity funds.

Although Asian and emerging market strategies are drawing increased attention, partly due to the poor growth forecasts for the United States and European economies, financial advisers need to carefully consider existing direct and indirect exposures to the regions, research house Morningstar said in a report.

"Investment in Asian and emerging markets shares can provide diversification benefits to Australian investors, but investors and advisers need to pay close attention to ensure that they are not effectively 'doubling up' exposure and introducing unintended biases into investment portfolios," Morningstar said in a sector review. 

"An increasing number of developed world-focused share funds provide exposure both directly and indirectly to the emerging world.

"Investors and advisers should also remain mindful of the high correlation between Australian and emerging markets shares, and how this could dilute portfolio diversification."

 
 

Morningstar reviewed 16 strategies available to Australian investors and found no reason to upgrade any of the strategies.

It downgraded three strategies.

The AMP Capital Asian Equity Growth strategy was downgraded from 'investment grade' to 'avoid' as a result of changes in personnel, in particular the departure of portfolio manager Karma Wilson in June, and the shift in investment process to a more value-orientated approach.

The Treasury Asia Asset Management New Asia strategy was downgraded from 'recommended' to 'investment grade' because of lower conviction.

"Although Peter Sartori and Eng-Teck Tan are seasoned investors, we have lingering questions about the overall robustness of the team's research efforts," the report said.

The Schroders Global Emerging Markets strategy was also downgraded from 'recommended' to 'investment grade', because of the relatively complex strategy and high fees compared to its peers.

Only the Platinum Asia and Colonial First State Global Emerging Markets Select strategies were awarded the top rating of 'highly recommended'.