Fund focus: Emerging markets of the future

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New frontiers have historically always offered opportunities, whether for Christopher Columbus or Captain James T. Kirk. For Andrea Nannini, manager of the $70m (£46m, €51m) HSBC New Frontiers fund, they also provide a chance to make double-digit returns despite the current developed market woes.

“It’s a chance to position yourself in what will be the future emerging markets,” he says. “In five to 10 years’ time, the traditional emerging markets will be too developed and the focus will shift over to the next block of countries, such as Nigeria, United Arab Emirates and Vietnam.”

It is a compelling argument, backed up by the fact many fortunes have been made by early investors in the more traditional emerging markets. Yet with the chance to make great returns comes the possibility of heightened risk – a notion Mr Nannini is keen to dispel.