The equity opportunity set for emerging markets (EM) has changed dramatically over the past three decades, as economic growth has translated into increased breadth, depth and maturity in EM equity markets. The geographic, sector, and market-cap composition of the EM index has shifted toward Asia, toward consumption, and toward mega- and large-cap stocks.
Today, the vast majority of global GDP growth is attributable to EM. But EM companies make up a relatively small proportion of most investors’ equity allocations. As emerging markets continue to develop and become more integrated into global markets, their influence is likely to increase. This represents an opportunity for investors to add value to their equity portfolios through EM equity investing. As they seek to capitalise on the opportunities presented by rapid growth and change, investors would benefit from the experienced guidance of a leader in emerging markets equities.
Emerging Markets Enhanced
Our Emerging Markets Enhanced Strategy seeks to add a small amount of alpha over its benchmark index consistently over time, with tight active-risk control.
Emerging Markets Enhanced SRI
Through a multi-level screening process, EM Enhanced SRI excludes companies that fail to meet key environmental, social and governance criteria from the investment universe, to serve the increasing number of investors who prefer not to hold them.
Emerging Markets Select
The Emerging Markets Select Equity Strategy managed by State Street’s Fundamental Growth and Core Equity team seeks to outperform the MSCI EM Index over the long term by taking a high-conviction active fundamental approach.
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1Source: State Street Global Advisors as at 30 June 2020. Exclusive of Emerging Market Equities invested in other MSCI-benchmarked strategies such as MSCI ACWI and MSCI ACWI ex-US