Introducing Disciplined Emerging Markets Exposure

Profile

A European family with long-standing European and US holdings asked Rains Family Office to help them add exposure to selected emerging markets.

Challenge

Previous attempts at investing in these regions had been opportunistic and driven largely by headlines, which resulted in concentrated positions and periods of uncomfortable volatility. The family wanted a more structured approach that took account of governance standards and liquidity, with currency risk assessed explicitly rather than left as a by-product of each trade.

What Rains Family Office Did

Set a defined allocation range for emerging markets within the overall public markets portfolio, with explicit liquidity and volatility limits.
Prioritised countries with improving corporate governance and credible macroeconomic policy, drawing on independent research and manager input.
Used diversified vehicles with strong oversight and monitored currency exposure against the family’s base currencies.
Ran periodic stress tests illustrating the effect of political events and currency moves on the broader portfolio.

Outcome

Emerging markets now represent a modest but stable allocation that contributes to long-term growth without dominating overall risk. The family has a written framework for when to rebalance, add or trim exposure, which has made decision-making steadier in periods of market stress.