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Emerging Markets

In-depth expertise to help capture the emerging market growth opportunity

Significant growth potential

The importance of emerging markets in the global economy has increased significantly, driven in large part by China. In 1980 emerging economies represented around 20% of global GDP. Today their share is 40%¹.

Their capital markets have developed and deepened during this period, but their economic importance remains under-represented.

Emerging markets represent around 23%² and 18%³ of tradeable equity⁴ and debt⁵ markets respectively, but only 13% and 6% of the most widely-used equity and debt benchmarks. This anomaly cannot be ignored.

Emerging markets are changing

We expect emerging markets to continue to grow faster than developed economies. Industrialisation, urbanisation and middle class wealth creation should result in a deepening and liberalisation of capital markets, so that over time they will better reflect the economic opportunity and importance of the emerging world.

Rising wealth levels within emerging markets are likely to contribute to increased demand for emerging market equity and debt and lead to the development of nascent savings markets.

An active investment approach may be best

We believe emerging markets are inefficient and poorly researched.

State-controlled companies still represent a significant weight in emerging equity indices. The performance of these companies can be heavily influenced by sudden changes in government policy. An active approach which draws on deep local resources is better able to navigate such events.

Similarly, a great deal of qualitative input and local knowledge is required to identify the environmental, social and governance (ESG) issues which can create significant performance differential in emerging markets.

In emerging market debt, not only do passive exchange-traded funds (ETFs) tend to underperform their benchmarks, the most widely used indices are narrowly focused and exclude a large portion of the opportunity set. Active management provides access to the full range of emerging market debt.

Why Schroders?

We have almost 120 emerging market investment professionals in 13 locations worldwide covering a range of emerging market assets*. Our specialist teams have developed their own investment processes, free from a centrally-developed “one size fits all” approach. This means there is considerable intellectual debate between different teams, who will challenge and scrutinise each other’s views. Together with our deep roots in in many emerging countries, including a number of local-to-local business units, joint ventures and partnerships, we are in a strong position to better manage your clients’ investments and deliver the outcomes our clients require.

A world of choice

We do not just specialise in one area. Our expertise spans equity, fixed income, multi-asset, quantitative investment and private assets. This means we offer one of the broadest selections of strategies to help your clients capture the growth opportunity in emerging markets; there are options to suit a range of client investment goals.

Explore all Strategic Capabilities

Liquid
Alternatives

Alpha
Equity

Credit

Emerging
Markets

Income

Multi-Asset
Solutions

Retirement

Sustainability

Private Assets

Solutions

What are the risks?

Past performance is not a guide to future performance and may not be repeated.

The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested. Exchange rate changes may cause the value of any overseas investments to rise or fall.

Emerging markets generally carry greater political, legal, counterparty and operational risk.

¹Source: IMF as at end December 17. ² Source: Factset, MSCI as at end of December 2017. ³Source: Bank of America Merrill Lynch Global Research, December 2016 ⁴ MSCI AC World. Source Factset, MSCI as at end December 2017 ⁵Bloomberg Barclays Global Aggregate. Source: FIA as at end December 2017

*Source: Schroders as at 30 June 2017

Important information:

Schroders has expressed its own views and opinions in this webpage and these may change. This webpage is intended to be for information purposes only.

The material is not an offer, solicitation or recommendation to buy or sell any financial instrument or to adopt any investment strategy.

The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in the webpage when taking individual investment and/or strategic decisions. No responsibility can be accepted for errors of fact or opinion.

Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy.

Past performance is not a guide to future performance and may not be repeated.

The data contained in this webpage has been obtained from sources we consider to be reliable. No responsibility can be accepted for errors of fact and the data should be independently verified before further publication or use.

Any references to securities, sectors, regions and/or countries are for illustrative purposes only.

In North America, this content is issued by Schroder Investment Management North America Inc., an indirect wholly owned subsidiary of Schroders plc providing asset management products and services as a US SEC registered investment adviser and in the capacity of Portfolio Manager with the securities regulatory authorities in Canada. For all other users, this content is issued by Schroder Investment Management Limited, 1 London Wall Place, London. EC2Y 5AU. Registered No. 1893220 England. Authorised and regulated by the Financial Conduct Authority.

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Issued by Schroder Investment Management (Singapore) Ltd, 138 Market Street, #23-01, CapitaGreen, Singapore 048946.

Schroder Investment Management (Singapore) Ltd is regulated by the Monetary Authority of Singapore. Reg. no. 199201080H

The information on this website is intended solely for use by Singapore residents.

The funds mentioned are Singapore-authorised funds and approved for sale or purchase in Singapore. By proceeding you are representing and warranting that you are either resident in Singapore or the applicable laws and regulations of your jurisdiction allow you to access the information. In particular, the information is not for distribution and does not constitute an offer to sell or the solicitation of an offer to buy units in Schroder funds in any jurisdiction where such activity is prohibited including the United States of America.

The contents on this website are for information only and without consideration given to the specific investment objective, financial situation and particular needs of any specific person. You may wish to seek advice from a financial advisor before purchasing units of any Schroder fund. In the event that you choose not to seek advice from a financial advisor before investing in any fund, you should consider whether the fund selected is suitable for you.

Past performance and any forecasts are not necessarily indicative of future performance. The value of units and the income from them may fall as well as rise. The funds are subject to investment risks. You should read the relevant prospectus obtainable from this website before investing.

The material and information on this site is current at the date of publication and is provided on an "AS IS" basis and without without any warranties of any kind, either expressed or implied.

To the best of the knowledge, information and belief of Schroder Investment Management (Singapore) Ltd ("SIMSL"), all information contained herein is accurate as at the date of publication. However, SIMSL or its affiliates or any director or employee of SIMSL or its affiliates cannot and does not warrant, guarantee or represent, either expressly or by implication, the accuracy, validity or completeness of such information.

Under no circumstances may the information contained herein, or any part thereof, be copied, reproduced or redistributed without the express permission of SIMSL. SIMSL or its affiliates, any directors or employees of SIMSL or its affiliates shall not be liable for any damages arising from any person's reliance on such information and shall not be liable for any errors or omissions (including but not limited to errors or omissions made by third parties) in such information. The information provided herein is subject to change without further notice.

Schroder Investment Management (Singapore) Ltd is regulated by the Monetary Authority of Singapore and is a member of the Investment Management Association of Singapore (IMAS).

MSCI Disclaimer

Source: MSCI
The information obtained from MSCI and other data providers, included in reports available from this website, may only be used for your internal use, may not be reproduced or re-disseminated in any form and may not be used to create any financial instruments or products or any indices. The MSCI information and that of other data providers is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling or creating any MSCI information (collectively, the “MSCI Parties”) and other data providers, expressly disclaim all warranties (including, without limitation any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party or other data provider have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.

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Emerging Markets

In-depth expertise to help capture the emerging market growth opportunity

Significant growth potential

Emerging markets are changing

An active investment approach may be best

Why Schroders?

A world of choice

Explore all Strategic Capabilities

LiquidAlternatives

AlphaEquity

Credit

EmergingMarkets

Income

Multi-AssetSolutions

Retirement

Sustainability

Private Assets

Solutions

What are the risks?

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MSCI Disclaimer

Liquid
Alternatives

Alpha
Equity

Emerging
Markets

Multi-Asset
Solutions