GLOBAL EMERGING MARKETS

Emerging economies such as Brazil, Russia, India and China represent some of the fastest growing countries in the world. They could play an important role in driving global economic recovery and growth. 

• The graph below shows how emerging markets have provided investors with higher level of returns on their investment, over a five year period, than some developed markets, but the asset class has generally been more volatile.

• As the graph suggests, since August 2008 the FTSE All-World Emerging Index (light blue line) has shown stronger signs of recovery from the global economic downturn than some developed indices, such as the FTSE All-Share Index (dark blue line).

FIVE YEARS DISCRETE PERFORMANCE 31/12/2005 TO 31/12/2010

Source Lipper: The table and graph above show the bid-to-bid prices and assume any income is reinvested. Past performance is NOT a guide to future performance.

• Emerging economies have strong GDP growth levels, young working populations, growing middle classes and relatively lower-debt economies compared to the West. The estimated growth in GDP for 2011 of the top 10 emerging economies, in this fund, are compared to the UK in the graph below. (Source: International Monetary Fund, World Economic Database, April 2010.) 

• Emerging market economies have young, expanding working populations. The media age in Japan, Germany and Italy is 43 while in the UK it is around 40. This compares to the average age of China's population of 34, while for Brazil it's 29 and in India 25. (Source:Nigel Hollis, Chief Global Analyst, Milward Brown, May 2010.)

• The passively managed fund tracks the capital performance of global emerging equity markets, as represented by the FTSE All-World Emerging Index.
• The fund manager will invest primarily in securities that make up this Index.
• Securities will be held with weightings generally proportionate to their market capitalisation.

Who is this fund suitable for?

This fund may be suited to investors who are interested in adding a level of diversification to an existing portfolio. The fund provides exposure to markets which may experience higher capital growth - as well as higher levels of volatility - than more developed markets.

• With no initial charges more of your money remains invested, other charges may apply.
• Invest with a name you can trust. We're one of the biggest providers of index-tracking investments in the UK, managing £202 billion as of 30 June 2010.
• We also manage over £6 billion of ISA funds on behalf of customers - making us one of the UK's largest stocks and shares ISA managers as of August 2010.

You can invest up to £10,680 as a tax-efficient ISA, or an unlimited amount in a unit trust. The maximum investment online is £50,000.

• You can invest a lump sum of £500 or from £50 a month.
• There are no initial charges or withdrawal fees.

GLOBAL EMERGING MARKETS INDEX TRACKING ISA: