Reform starts to spread across regions

By Jonathan Asante, fund manager at Framlington Four main types of argument are usually advanced in favour of investing in emerging markets. Two of which, although relevant at present, are unlikely to deliver sustainable outperformance for a long-term investor, and two of which are quite compelling. The first is cyclical. Developing countries, especially those in Asia, manufacture an increasing amount of the world's goods, taking advantage of a supposed cost advantage and also delivering jobs. The problem is that it is unclear why developing economies have a cost advantage in capita...