Investors looking for a new fund option have been advised to consider the BRIC nations as the countries are set for a successful decade, according to Legal & General.
The group of countries, which comprises of Brazil, Russia, India and China, has been highlighted for its continuing growth potential over the next decade by Legal & General Investment Management's emerging markets strategist Brian Coulton.
Speaking at the Fundamental's meeting, he noted that what takes place in these nations is no longer a local matter, as each of the global economies is becoming increasingly inter-linked.
As a result of this, the BRIC nations will have a real impact globally, as these countries are now being seen as the powerhouses of the emerging markets.
However, he explained that beyond the next ten years, changes will be seen as the populations age and shifts in affluence take place.
"By looking at the demographic trends, we can see that the growth in working age population will slow sharply in China and actually fall in Russia. A key conclusion is that the sharp increases in investment ratios that boosted capital accumulation in the last decade are highly unlikely to be repeated," Mr Coulton added.
While the growth is likely to slow, there will also be changes seen in the areas that are performing well, as a sharp decline in investment growth is predicted, with the BRIC nations changing from being producers to consumers.
Looking closer to home, Legal & General recently questioned investors about what they think will happen with exchange rates over the coming six months, with 63 per cent stating they do not think it will change.
©2008 fundsnet |