Building an Optimal Emerging Markets Portfolio

EMEA Head of Investment Strategy & Research

The opportunity set for emerging markets investors has evolved considerably over the past three decades, as strong and sustained economic growth has underpinned increased breadth, depth and maturity in the EM capital markets. Market liquidity and access have improved significantly and flows into EM assets have increased as the excess return potential continues to attract investor interest.

For investors, the consideration now is usually how, rather than whether, they should allocate to EM equities and bonds, and understanding the impact of differing levels of exposure. In this paper, we look at the factors to consider in order to build robust exposures to emerging markets.