Global market volatility has been especially tough on emerging markets, but this volatility also creates opportunities.
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Emerging markets have had a tough year so far
The first two quarters of 2018 have been very tough for emerging markets, with the MSCI World Emerging Markets Index underperforming its developed market counterpart. This is largely due to political tension created by the trade wars initiated by the US and responded to by its major trading partners, accompanied by increasing negative rhetoric. We have also seen sanctions on Russia becoming more intensified, and uncertainty around elections in key emerging market countries.
We are confident about the long-term potential of our investments
The current market volatility has created significant investment opportunities that should reward investors who are willing to stay invested for the long term. We have spent much of May and June meeting the management teams of the companies that we invest in and are confident that their long-term earnings potential remains intact.
SIM Global Emerging Markets Fund
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