City of London Investment Management is merging three of its products into one.
The company's Emerging Markets Country Trust and Emerging Asia Country Trust are being folded into the emerging world fund, a Dublin-based open ended investment company (Oeic) that is demoninated in dollars.
The Oeic is targeted at experienced investors willing to accept a high degree of risk. And it is designed for growth by investing in investment trusts based in emerging markets all over the world. These include countries such as Mexico, Brazil, Chile, Venezuela, China, Thailand, India and South Korea.
Because it invests in emerging markets, emerging world has a high risk profile, but the company feels that as it will focus on investment trusts and not directly use stocks and shares from these countries, this reduces the risk.
The countries chosen for emerging world are growing, but they may also be politically unstable. As a result, this could also mean high levels of risk to achieve the growth.
According to Standard & Poor's the City of London emerging world fund is ranked 96 out of 132 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to September 4, 2000.