As management fees they span a wide range

The disappearance of the "emerging" qualifier for the benefit of the acronym "BRIC" underlines a reality. The Brazil, the Russia, the India and China (the "BRICS", therefore) form a coherent whole under the common banner of economic growth strong and visible. This is not everything. "Winners of the financial crisis, these countries now wanted to become an active political power", insists Astrid Frederiksen, analyst Manager at Ofi AM. The dynamism of the "Quartet" in contrast with the gloom of the major developed countries, seems mostly to be immunized.

It has the qualities that make an attractive area of the BRICs. Containers of huge capital, they have significant reserves of natural resources, of a skilled inexpensive and considerable reserves of Exchange. Finally, the progressive enrichment of their population fuels booming domestic demand. A genuine vein for these countries, which should enable them, by Jim O'Neill (Goldman Sachs), to be among "the seven largest economies of the world in 2030". Specifically, "each of these countries has characteristics and specific strengths leading to make their stock markets almost unavoidable," said Nuno Texeira, Executive Director of Schroders. Agriculture and materials first to the Brazil, energy Russia, India services and manufacturing products in China...

Cost and local regulations

In the light of so beautiful prospects, stock market players were quick to react. The BRICs are in the ranking of the rating agencies. And UCITS every year more numerous they are dedicated. The individual however has several opportunities to "play" this region. The most daring choose alive titles, knowing that the cost and local regulations often make the deterrent acquisition, if not impossible. On the other hand, some (China Mobile, Petrobras, Gazprom...) shares are purchasable in New York, London or Frankfurt.

In addition a high (23.9 minimum euros on the NYSE in Boursorama, 85 euros) minimum cost excluding cost of brokers in HSBC and parsimonious information, the operation has another drawback: sometimes being exposed to foreign exchange risk. Prudent investor can invest in an indirect way by selecting active European companies in emerging markets (read here). Much cheaper, this alternative does however benefit as part of the growth potential of these countries.

Another solution: the trackers or ETF. Negotiable on the stock market, these UCITS replicate more closely the performance of an index. Much less expensive than an index Fund (they support nor rights of entry or exit rights), the ETF are practical to diversify his heritage or enter access difficult markets. Is that "free grant" monitoring of their index can be a brake on their performance when the awards return. Indeed, because they could be a liquidity cushion, exposed in all at the risk of their market.

Finally, the last option is to select for actively managed UCITS. Piloted by professionals, they contain in principle better risk mediating in a tactical way liquidity, a country or one sector over another. A true comfort for the investor, whose success is measured in terms of an offer that has more than doubled in five years (see table above). But, in a landscape also recent, it may be risky to rely on management which did not evidence of its consistency over long period. As management fees, they span a wide range. Those particular collected by FIO multiselect BRICS are by far the highest (5.53). At the time, they require the compartment sustained and recurring performance so that the investment is profitable.

Higher volatility

Less risky that investment focused on one or other of these four countries, the BRIC region allows interesting internal diversification. Its stock-market performance are also flattering (MSCI Bric in euro: 14.7 over a year and 11.04 over five years to 31 December 2010) than those of the MSCI EMU (euro-zone countries) for example may be disappointing (-0,44 1 year ,-3,89 over five years to December 31, 2010).

But optimism should not obscure the risk. Despite the strength of their fundamental, these awards are subject to volatility higher than that of developed countries. For cause, "even at the close in their domestic market, companies in these countries remain highly dependent on external markets... and financial markets are still vulnerable to the withdrawals of foreign capital," said Nuno Teixeira. A valid observation for how long yet