Emerging markets

Grasping the growth opportunities in under-represented markets.
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Global growth opportunities

Emerging markets are radically diverse, but can offer some of the most attractive growth opportunities globally

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Active stays ahead

Active managers seek to help you stay ahead of rapidly changing conditions and grasp opportunities earlier

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ESG included

You can access investment strategies with sustainability baked in

There’s no such thing as a typical emerging market

Opportunities look very different in China than they do in Chile. What many emerging markets do have in common is faster potential growth than developed economies – with the promise of capital market development and budding domestic savings markets. But the same potential that makes them attractive also makes them tricky to navigate without steady hands at the wheel. 

There are compelling reasons to be active in emerging markets

Emerging markets can be more volatile, and often overreact to new information. But volatility provides opportunities for experienced active managers to take advantage of – such as anticipating shifts in index weightings instead of reacting to them. Active managers can also help you manage the risks, while watching for and weathering change in a way that passive funds can’t.  

 

Environmental, social, and governance (or ESG) considerations have never been more important. Active investors can get under the bonnet of specific companies to see who’s set up for sustainability. This is especially important, given a heavier presence of state-owned companies in emerging markets.  

Our experts don’t agree on everything – and we like it that way.

Of course, our emerging markets specialists have the in-depth knowledge and local presence you’d expect. But they don’t plug their insights into a central formula. They regularly debate, challenge, and scrutinise each other’s views.  

Our people also have a raft of constantly updated ESG tools and analysis at their fingertips – essential for a strong emerging markets strategy. 

Emerging Market Equity

The Emerging Market Equity team consists of more than 50 investment professionals, including portfolio managers and securities analysts positioned around the globe. This team is supplemented by the expertise of Schroders developed market sector analysts as well as data insights professionals and a central Sustainable Investment team. There is a strong focus on talent development as the Emerging Market Equity team believes that culture drives team stability. Two major pillars of our approach include a culture of constructive challenge and an ongoing focus on process enhancement.

Beyond core, global emerging market equity mandates, the team also has deep expertise in managing concentrated, regional, frontier and impact strategies.

Emerging Market Debt & Commodities

The Emerging Market Debt & Commodities team consists of more that 40 investment professionals, including dedicated sovereign and corporate analysts, traders, economists, and portfolio managers.  Beyond London and New York, this team operates in six emerging market countries. The differentiating aspect of having senior commodities portfolio managers and analysts embedded within this team is central to our approach given the importance of commodities to so many emerging market economies. The team employs proprietary tools to create portfolios with a stringent risk control framework.

The team offers blended emerging market debt strategies in both an absolute and a relative return approach, as well as separate strategies focusing exclusively on both hard and local currency bonds. Commodities strategies include enhance beta and total return approaches.

Our global credentials include offices in 11 emerging market countries including:

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Country

Date office opened

Argentina

1935

Brazil

1945

China

1994

Hong Kong

1971

Indonesia

1990

Korea

1987

Mexico

1997

Singapore

1976

South Africa

2015

Taiwan

1989

UAE

2007

“The same potential that makes emerging markets attractive also makes them tricky to navigate without steady hands at the wheel.”

Past performance is no guarantee of future performance. The value of investments and the income from them can go down as well as up, and you (or your clients) might not get back what you originally invested.  

Emerging markets tend to be riskier than developed markets: they’re less stable politically, legally, and operationally. And exchange-rate changes can also make the value of any overseas investments rise or fall. 

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser providing asset management products and services to clients in the US and in Canada, NRD Number 12130. Registered as a Portfolio Manager in Canada with the securities regulatory authorities in Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan.SFA markets certain investment vehicles for which other Schroders entities are investment advisers. 

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security / sector / country.

Schroders Capital is the private markets investment division of Schroders plc.Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com

SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.