Emerging markets are radically diverse, but can offer some of the most attractive growth opportunities globally
Active managers seek to help you stay ahead of rapidly changing conditions and grasp opportunities earlier
You can access investment strategies with sustainability baked in
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.
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.
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.