If you are looking at indices, be aware that the MSCI Emerging Markets index is nearly 20 per cent China and more than 15 per cent South Korea. The top-10 holdings represent 16 per cent of the index, with Samsung Electronics the largest constituent at more than 3 per cent.
Thus you may wish to focus your investment more closely, either through individual country indices if you want to go passive, or by finding a third-party manager whose exposure meets more of your own global view.
Andrew Herberts is head of private investment management at Thomas Miller Investment
Key points: current trends
For commodity-biased economies, mining projects started years ago and are now coming on-stream, adding supply into a market where demand is slowing. This is driving a price fall that is likely to persist into 2015, as inventory is depleted and very slowly, capacity is squeezed out.
Investors should keep an eye here on government revenues, particularly if they have been used for large-scale infrastructure projects or domestic demand stimulation.
Manufacturing exporters may also begin to feel the effects of the stalling growth in Europe, though if their industries are highly commodity or energy intensive, costs ought to fall. Nevertheless, it is the demand picture that will dominate sentiment here.
