Robust, quality markets
Emerging markets have become structurally stronger, larger and more investable, defying outdated assumptions.
Key diversifiers
With market drivers distinct from developed markets, emerging markets can provide needed, and often high-quality, diversification.
Leaders in innovation
From technology adoption and AI to renewable energy and infrastructure build-out, EM economies are often ahead of DM counterparts in today’s growth trends.
Positive growth trends for markets with unique, compelling stories
Increased urbanization, a growing middle class, and rapid technological adoption are among the trends driving long-term growth across emerging markets. Prudent government policies and sound monetary frameworks have strengthened economic foundations.
Still, emerging markets are not a monolith. From South Korea and Taiwan’s leadership in advanced technology, to India’s rapid digital transformation, and Latin America’s rising role as a global supplier of critical commodities, each market has a unique story and offers investors distinct opportunities for long-term growth and diversification.
Emerging Market Equities
Emerging market equities: A pathway to half the world’s economic activity
Emerging markets are too significant to overlook. EM economies contribute nearly 45–46% of global GDP yet represent only about 20% of market-cap-weighted global equity indices. This disconnect is partly driven by low investor flows. For investors, the EM underweight represents a misallocation risk, as it minimizes exposure to some of the world’s most dynamic sources of growth, innovation and diversification.
Why Schroders when investing in emerging market equities
Experience few firms can match
We've been investing in EM since the 1970s.
A global research platform
We have more than 50 investment professionals and five offices in emerging markets.
888 years of industry experience on our team
The average experience of our EM investors is 16 years.
A disciplined investment process
We apply fundamental, bottom-up analysis with no systematic style basis and a focus on risk-adjusted outcome.
$50 billion managed in EM equity
Our scale allows for efficiencies and access to company management teams that smaller firms can't match. (AUM as of 12/31/25)
A full range of solutions
We offer solutions to meet the various needs of our clients.
“Gaining emerging market equity exposure can’t simply be a ‘set it and forget it’ index trade. These markets demand active, selective investing."
Tom Wilson, CFA, Head of Emerging Market Equities
Emerging Market Debt
Emerging market debt: A diverse and increasingly investment-grade market
Discard any old assumption about EM debt being lower quality. Today, investors can turn to this asset class for:
- High quality: Improved credit profiles have earned a growing proportion of issuers investment-grade ratings.
- Additional income: Even as it migrates to higher quality, EM debt continues to provide opportunities for extra yield.
- Better diversification: EM debt investors can get exposures to more than 50 different markets—each with its story and market drivers.
- A vast market: With a market capitalization of $5 trillion.
- A diverse corporate sector: With 700 companies issuing debt.
- Broad currency exposure: With issuance in 20 local currencies.
Why Schroders when investing in emerging market debt
A global research platform
We have more than 40 EM debt investment professionals and five offices in emerging markets
Capabilities across the EMD opportunity set
Our expertise span sovereign, corporate and local currency markets.
Embedded commodities expertise
With commodities a major resource for these markets, the EM debt team's partnership with the firm's commodities experts provides critical insights.
Decades of market experience
Schroders has been investing in EM debt markets for more than 50 years. Our team members have an average of 20 years of experience.
Active and disciplined
Passive exposure isn't sufficient to manage these complex markets. Return dispersion across regions, countries and issues demands careful security selection and rigorous risk management.
$15 billion in EM fixed income assets
Our scale helps to enhance liquidity and risk mitigation. (AUM as of 12/31/2025)
“Emerging market debt didn’t just grow. It matured and transformed to become one of the most compelling opportunities in global fixed income.”
Fernando Grisales, CFA, Senior Portfolio Manager
All investment involve risk, including the loss of principal. These risks exist to a greater extent in emerging markets than in developed markets.