Emerging markets
Grasping the growth opportunities in underrepresented markets
Global growth opportunities
Emerging markets are radically diverse, but can offer some of the most attractive growth opportunities globally
Active stays ahead
Active managers seek to help you stay ahead of rapidly changing conditions and grasp opportunities earlier
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 represent more than 20% of the global fixed income opportunity set1 and approximately 10% of global equities2, and are deserving of an allocation within a professionally-oriented portfolio. Headquartered within these countries are some of the world leaders in sectors as diverse as internet commerce, green energy, food exporters, semiconductors, artificial intelligence, and electric vehicles, not to mention many national champions such as banks and utilities with dominant local market share.
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.
(1. Bank of America Securities; 2. MSCI Index)
Our experts don’t agree on everything – and we like it that way.
Schroders operates one of the industry’s largest emerging markets franchises, with more than 138 investment professionals across the globe managing in excess of $83.2 billion (as of December 31, 2022). Our emerging markets footprint includes equities, fixed income and private markets, and we have operated in these markets for more than seven decades. These teams further integrate with corporate resources specializing in economic forecasting, commodities, big data, sustainability and, of course, specialists in a wide array of economic sectors. We feel actively meeting with emerging market companies while having access to such in-house specialists provides superior and deeper insights to merely running valuation screens off of a data set.
Our people also have a multitude 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:
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.