Strategies & Capabilities

Is It Time To Re-Look at Emerging Markets?

The COVID-19 crisis has ravaged returns globally. EM provides the return potential that investors need. But the world has changed and successful EM investing needs the right approach for now. Take a look at EM.

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Why Consider EM Investing

Emerging Market Debt

Emerging Markets (EM) have evolved significantly over the last two decades—benefitting from economic growth driven by productivity gains, implementation of various structural reforms and consumption growth from their rising middle-class population.
EM countries currently contribute to 60% of the world’s GDP and have a 40% share in the world’s global trade.
EM financial markets have also grown in variety, size, depth and liquidity from their early days, to being considered as an essential allocation for a balanced portfolio.
The long-term outlook for EM remains positive. With favorable demographics, robust technological advances, rapidly growing urbanization, improvements in education and healthcare – emerging economies are expected to be the key drivers of global growth in the coming years.
Collectively, these long-term drivers of growth can often lead to enhanced returns, meriting their consideration for the growth component of investor portfolios.

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07/31/2021

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