Introduction

Investors have done very nicely from emerging market exposures over the past year or two. So-called Bric baskets - Brazil, Russia, India and China - have proved popular with institutional, high-net-worth and even retail investors keen to take exposure to high-growth, high-yield markets.

But two key events last year have served as a sharp reminder that emerging markets aren't just one-way, money-spinning investments. First, there was the military coup in Thailand on September 19. In fact, the financial markets responded fairly positively, as it was seen as ending the uncertainty surrounding former prime minister Thaksin Shinawatra's rule. However, botched currency controls implemented by the Thai central bank in December demonstrate that emerging markets can still throw up nasty