First State: heightened risk in developing countries

Political risk in some of the biggest developing countries is on the rise, warns First State's global emerging markets team.

However, the managers believe any turbulence could create opportunities for investors. Glen Finegan, co-manager with Jonathan Asante on the Global Emerging Markets fund, says: “The scope for perceived political risk is huge, especially in the established emerging markets” For example, he says private companies in China could find they receive more interference from the Government. “In China, we are starting to see some attacks on private business,” he says. “Workers are being allowed to dissent in a way they were not before. There is a large part of the populace feeling more dis...