Relying on the state

% company state ownership

When investing in emerging markets, investors should pay close attention to the identities of fellow shareholders. Given that almost 30% of the MSCI Emerging Markets Index is owned by governments*, including large companies such as Petrobras, it is important to be active investors in order to seek out those companies with sound governance and that are run in the interests of all shareholders.

Sophia Whitbread, Investment Manager – Emerging Markets

 

*Source: MSCI, January 2014. Total GEM equates to 29.4% and is a weighted average

 

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