THE former Soviet Union and China have the greatest growth potential over the next three years, according to a straw poll of emerging markets conducted by Sunday Money .
The poll showed 37.5 per cent of respondents rated Russia and China as the most promising markets.
Twenty fund managers and investment advisers were interviewed by phone for the poll.
We asked fund managers: Which emerging market do you consider has the greatest potential for growth over the next three years? Which has the highest growth potential of Latin America, eastern Europe or Africa? What proportion of a global portfolio would be best invested in emerging markets? A, 0 to five per cent; B, five to 10 per cent; C, 10 to 15 per cent; D, 15 to 20 per cent; or E, more than 20 per cent? Rank the following in terms of growth potential over A, three years; B, longer term - the former Soviet Union, India, China, Brazil, the Philippines and South Africa.
The faith shown in Russia by fund managers, was surprising because they said it was far too early to even think of investing there, given the chaotic financial situation.
If fund managers are as optimistic about the former Soviet Union as China over the next few years, why are there so many China funds available in Hong Kong but no Russia funds? The answer is probably related to the fund-raising conundrum.
It is like making a movie: the idea for the film may be brilliant, but the money must first be secured.
