Merrill Lynch Investment managers is introducing the new emerging markets telecoms and technology fund.
The fund is a Luxemburg based Sicav and is denominated in US dollars. It is aimed at investors who are interested in technology and are looking to diversify their portfolios out of America and Europe.
Emerging markets will invest in new and emerging telecommunications and technology funds in countries with growing economies, including India, Israel, China, Korea, Taiwan, Brazil and South Africa.
These are geographical areas that have great possibilities for growth, especially as they contain two thirds of the worlds population as potential consumers. Although many of these countries are politically unstable, with an investment reach extending all over the world and not tied to just one geographical region, emerging markets will spread the risk.
The type of companies that it will invest in include areas such as semiconductors, information technology services, computer hardware, electronic equipment and mobile telecommunication.
According to Standard & Poors the Merrill Lynch emerging markets portfolio fund is ranked 47 out of 100 funds, based on £1,000 invested on a bid to bid basis with net income reinvested over three years to September 18, 2000.