Navigating Emerging Markets: Trends & Opportunities
Trends and opportunities in emerging market equities.
Investing in emerging market1 equities has transformed from a generation ago. Economic diversification has improved the breadth of the market, while favorable demographics and stable economic and monetary policies have improved the quality of opportunities. However, across emerging markets there are divergent risk and return profiles, and we believe that demands an experienced, actively managed approach, like that of Martin Currie.
Current Perspectives from Martin Currie
Market OutlookMarch 13, 2018
Market OutlookMarch 22, 2018
Investment InsightsFebruary 14, 2018
Take a Deeper Dive into Emerging Market Trends
Leaders in Technology
Emerging market economies are maturing—shifting their focus away from energy and raw materials—in part due to being home to some of the world’s rising leading companies in high-tech production and innovation. Change is happening fast. Tech-savvy populations are quick to embrace new concepts, leading to phenomenal growth in FinTech (the marriage between finance and technology), and now with a large proportion of emerging market populations accessing the internet, it’s no surprise that e-commerce is on the rise.
Made in the Trade
Emerging markets are now the major force in global trade. Twenty-five years ago, two-thirds of global trade occurred between advanced economies, but today, two-thirds of global commerce involves developing nations. And many developing countries are actively cultivating and developing their trade partnerships—China’s New Silk Road, or the "One Belt One Road" (OBOR) initiative, is an extraordinary example of visionary growth prospects from expanded trade relationships.
Powering the Future
Growing middle-class populations and increasingly skilled workforces are driving changes in domestic consumption and the productivity of human capital. This may help chart the future of global growth. In the auto sector alone, developing countries are likely to drive demand for electric vehicles, and some may also play an integral role supplying the raw materials and manufacturing capacity to produce the batteries to power these cars.
New realities in the developing world
Select sectors: MSCI Emerging Markets Index2
Source: Bloomberg, as of 2/28/18. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
1 Emerging markets are nations with social or business activity in the process of rapid growth and industrialization. These nations are sometimes also referred to as developing or less developed countries. Developed markets refers to countries that have sound, well-established economies and are therefore thought to offer safer, more stable investment opportunities than developing markets.
2 The MSCI Emerging Markets (EM) Index is a free float-adjusted market-capitalization index that is designed to measure equity market performance in the global emerging markets.
All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.
Equity securities are subject to price fluctuation and possible loss of principal.
Active management does not ensure gains or protect against market declines.
International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility.
Diversification does not guarantee a profit or protect against a loss.