Gavin Lumsden – CityWire Money, 7/17/2015
Outside the UK and US investors are often wary of single country funds, disliking the lack of diversity they offer.
The experience of JPMorgan Brazil (JPB +) over the past five years suggests this is wise. Since its launch in April 2010 the investment trust has lost shareholders 45% of their money. After a good first year, it was literally downhill all the way for the unfortunate investors! In the last financial year the shares fell 12%.
Of course this has been a tough period for all funds investing in emerging markets with the slowdown in China and the consequent hit on commodities combining with fears of a capital flight to the US when interest rates rise.