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Emerging markets still worth a look

One-third of world GDP is being driven by emerging-market economies, and a globally diversified portfolio should have exposure to them.

Workers at the Severyanka blast furnace in Russia, once the largest in the world. BRIC - for Brazil, Russia, India and China - used to be shorthand for the rise of a brash new bunch of economic powers but has now become a four-letter epithet.

OVER the last five years, investors in emerging-markets mutual funds have paid plenty and gotten little in return. Emerging-markets funds lost an annualised average of 3.19 per cent over the last five years, investment research company Morningstar said. Yet they are far more expensive, on...