Emerging markets

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. 

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.  

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.

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.