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.

Why Consider EM Investing

  • 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.