DOUBTS over the sustainability of growth in some of the world’s emerging markets is cooling the interest that foreign investors are showing in them, according to one local investment manager.

Spearpoint chief investment officer Kevin Boscher (pictured) said research from EPFR – a research firm
that tracks fund flows – that showed net equity inflows into Brazil falling to $1.8bn in the year to date compared with $13.5bn in 2009 came as little of a surprise.

Mr Boscher said that while he remained positive on the medium to long-term outlook for many emerging countries and their financial markets, Brazil was definitely one that was losing its appeal.

‘Country selection is very important when investing in emerging markets, mainly due to significant differences in each country’s fundamentals together with the fact that many economies are at different stages of the cycle,’ said Mr Boscher.

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