The Fiducian Global Smaller Companies Strategy & The Fiducian Emerging Markets Strategy

The Fiducian Global Smaller Companies and Emerging Markets Fund has been an excellent way of gaining exposure to two important international shares sectors. These sectors are smaller companies that are listed on recognised stock exchanges in the developed markets and companies that are listed on stock exchanges in so-called ‘emerging markets’ (in developing countries).

Why should we invest in these sectors?

Why should we invest in these sectors? Smaller companies in developed and better regulated markets have shown superior growth over the longer-term when compared with their larger peers, as they are generally more flexible and operate in market niches that give them greater opportunity to increase profits.

Emerging markets funds invest in developing countries and offer investors the opportunity to benefit from the significant growth potential inherent in many of these economies as the living standards of their people rise.

What has changed?

From 27 June this year, investors are now able to access these sectors separately by investing directly into them rather than having to combine exposure as determined by Fiducian.

These two new strategies enable investors to continue to maintain exposure to global smaller companies in the developed markets and to emerging markets but with the ability to finesse exposure to each of these two international market segments to suit their personal circumstances.

What to do?

We recommend that investors continue to hold exposure to these two sectors and encourage investors to engage with their financial adviser to ensure that they are comfortable with the new arrangements being put in place.

Remember that your financial adviser can provide all necessary personal advice after taking into account your personal circumstances, objectives and needs.