Finding sustainability in emerging markets.

Emerging markets represent the majority of the global population and their people are shaping their own destiny.

A majority of the world’s population lives in emerging markets. A well-mapped process for lifting poor economies into middle income ones, has recently delivered annually more new wealth and demand, in absolute terms, than at any other time in history.

Yet still, it is at an early stage. We see decades of growth ahead for companies able to serve large and diverse populations in countries such as China, India and Brazil.

Investments into the future of these countries are generating significant benefits. So why do emerging markets represent only a fraction of the allocation of investor portfolios?

Millions of new middle-income consumers want to live to the max

Incomes in emerging markets are well below those of the developed markets of Europe, the U.S., and Japan. But the people in emerging markets are working hard to close the gap. The sheer population size of these markets creates massive new demand with spending growth that should last not only for years, but also for decades.

Demand starts with simple staples such as toothpaste and shampoo replacing traditional cleaning practices, but is quickly moving up the value chain to electricity, smart phones, healthcare, and credit – alongside the desire for better education and societal stability. The roadmap to prosperity is now in place and structural shifts are driving change.

 

infograph-emerging-markets-chart1_en

 

The result of these structural growth drivers is that larger emerging markets can grow quicker than developed markets, while importantly, their debt still remains at sensible levels relative to their ability to pay.

infograph-emerging-markets-chart2_en
infograph-emerging-markets-chart3_en

 

What is an emerging market?

What unites people across emerging markets is their striving for a brighter future, a higher standard of living, and a place at the world’s table. For the first time, for millions of families, it is within their grasp.

A small proportion of the world’s population live in the wealthy developed markets. Emerging market countries cover a broad range – from relatively wealthy countries such as South Korea to earlier stage markets such as Nigeria. An effective path towards economic development was blazed by the Asian Tigers (Hong Kong, Singapore, Taiwan, and South Korea) after the Second World War. This road map has provided lessons that have helped bring better lives to literally hundreds of millions of people over the past 20 years.

There are still significant income and consumption gaps between developed and much of the emerging markets. The Asian Tigers road map showed how important private enterprise is in delivering goods, services, and infrastructure suited to the tastes and needs of local populations, creating jobs, and in turn generating new consumer demand.

These developments need capital to finance their growth and development. For investors there is a significant opportunity to bridge emerging market demand for capital and the need for long-term investment returns.

Our investment teams search the world looking to invest into governments, businesses, and management teams with the potential to deliver economic growth and market leading goods and services to ever wealthier and confident customers across the emerging markets. These growth fundamentals are quite different to many found within the mature developed markets, which offers opportunities to diversify the portfolio.

Active, bottom-up equity investment strategies

Emerging markets offer significant long-term potential for investors. However, as a result of their earlier stage development and smaller domestic capital markets they are often more volatile than the developed markets. While this can make investors nervous, it also brings opportunities to experienced active investment managers. Our investment teams all employ investment philosophies based on fundamentals that are executed through bottom-up stock selection. 

This approach helps to participate in both the growth opportunities and sentiment driven volatility so often seen in emerging markets.

 

6 funds found

Hide all share classes Show all share classes

Vontobel Fund - Emerging Markets Blend

Fixed Income Boutique Emerging Markets Bonds

View 5 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
HI (hedged) CHF LU1896847891 44276200 100.63 -7.97% Aug 06 2020
HI (hedged) EUR LU1896847628 44276198 101.22 -7.91% Aug 06 2020
HS (hedged) CHF LU1896848279 44276223 102.51 -7.64% Aug 06 2020
I USD LU1256229680 28772028 146.54 -6.75% Aug 06 2020
PHS (partially hedged) CHF LU2001997159 48077323 89.99 -9.28% Aug 06 2020
Vontobel Fund - Emerging Markets Corporate Bond

Fixed Income Boutique Emerging Markets Bonds

View 8 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
A USD LU2033400107 49240328 99.07 -4.85% Aug 06 2020
AQN USD LU1914926925 44988752 98.17 -4.52% Aug 06 2020
B USD LU1750111707 39897195 106.56 -4.84% Aug 06 2020
HI (hedged) EUR LU1750111533 39898221 101.16 -5.62% Aug 06 2020
HI (hedged) CHF LU1923148958 45490215 104.52 -5.79% Aug 06 2020
I USD LU1305089796 30034517 156.55 -4.51% Aug 06 2020
N USD LU1750111616 39897174 108.01 -4.53% Aug 06 2020
S USD LU2046631813 49663051 98.45 -4.16% Aug 06 2020
Vontobel Fund - Emerging Markets Debt

Fixed Income Boutique Emerging Markets Bonds

View 16 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
AH (hedged) EUR LU1482064224 33739112 91.82 -4.51% Aug 06 2020
AHI (hedged) CHF LU1572142336 35836655 92.50 -4.36% Aug 06 2020
AHN (hedged) EUR LU1684196279 38261507 93.14 -4.24% Aug 06 2020
AI EUR LU1086766554 24882764 119.02 -8.01% Aug 06 2020
B USD LU0926439562 21343505 132.91 -3.27% Aug 06 2020
H (hedged) EUR LU0926439992 21343509 118.10 -4.48% Aug 06 2020
H (hedged) CHF LU0926440065 21343526 114.35 -4.72% Aug 06 2020
HI (hedged) CHF LU0926440495 21343537 118.83 -4.36% Aug 06 2020
HI (hedged) GBP LU1700373241 38689213 101.17 -3.72% Aug 06 2020
HI (hedged) EUR LU0926440222 21343536 122.76 -4.23% Aug 06 2020
HN (hedged) CHF LU1683481938 38261772 97.09 -4.35% Aug 06 2020
HN (hedged) EUR LU1683488438 38261771 97.88 -4.24% Aug 06 2020
HS (hedged) CHF LU1627767111 37026687 101.96 -4.03% Aug 06 2020
I USD LU0926439729 21343507 138.56 -2.94% Aug 06 2020
N USD LU0926439646 21343506 137.95 -2.97% Aug 06 2020
S USD LU1171709691 26738515 143.34 -2.59% Aug 06 2020
Vontobel Fund - Emerging Markets Equity

Quality Growth Boutique Emerging Markets Equities

View 20 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
A USD LU0040506734 618762 680.06 -0.93% Aug 06 2020
AHI (hedged) EUR LU0858753618 20093377 105.46 -1.57% Aug 06 2020
AN USD LU1233654372 28256244 112.89 -0.43% Aug 06 2020
AX CHF LU2086609422 51279925 93.03 - Aug 06 2020
B USD LU0040507039 618763 829.08 -0.93% Aug 06 2020
C USD LU0137006218 1301503 216.35 -1.28% Aug 06 2020
G GBP LU0863298914 20189827 158.43 0.66% Aug 06 2020
H (hedged) EUR LU0218912235 2143009 203.45 -2.17% Aug 06 2020
H (hedged) CHF LU0469618119 10765166 105.65 -2.28% Aug 06 2020
HC (hedged) EUR LU0333249109 3813691 181.80 -2.52% Aug 06 2020
HI (hedged) EUR LU0368556220 4289807 135.41 -1.51% Aug 06 2020
HI (hedged) CHF LU0469618382 10765176 129.86 -1.64% Aug 06 2020
HN (hedged) GBP LU1179464281 26915669 112.95 -1.66% Aug 06 2020
HN (hedged) CHF LU1683486069 38261775 96.25 -1.71% Aug 06 2020
HN (hedged) EUR LU1179463556 26913860 108.75 -1.66% Aug 06 2020
HS (hedged) CHF LU0773616858 18423570 133.52 -1.21% Aug 06 2020
I GBP LU0787641983 18667507 169.70 0.51% Aug 06 2020
I USD LU0278093082 2870698 210.77 -0.28% Aug 06 2020
N USD LU0858753535 20093248 125.90 -0.43% Aug 06 2020
S USD LU0209301448 2035840 415.54 0.16% Aug 06 2020
Vontobel Fund - mtx Sustainable Emerging Markets Leaders

Sustainable Equities Boutique Emerging Markets Equities

View 17 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
A USD LU0571085330 12236105 158.71 3.85% Aug 06 2020
AH (hedged) EUR LU1725744087 39290530 100.25 2.64% Aug 06 2020
AI USD LU1609308298 36643668 131.27 4.39% Aug 06 2020
AN USD LU1683485681 38261784 109.32 4.36% Aug 06 2020
AN GBP LU1717118191 39078906 107.68 5.31% Aug 06 2020
ASX EUR LU1964740309 46974193 109.36 -0.82% Aug 06 2020
B USD LU0571085413 12236106 166.18 3.85% Aug 06 2020
G USD LU1767066605 40236190 103.88 4.64% Aug 06 2020
H (hedged) EUR LU1646585114 37470435 112.08 2.57% Aug 06 2020
HI (hedged) EUR LU1650589762 37574631 111.96 3.14% Aug 06 2020
HI (hedged) CHF LU1550202615 35324235 131.73 2.96% Aug 06 2020
HN (hedged) CHF LU1725744830 39290546 102.94 3.04% Aug 06 2020
I EUR LU1626216888 37012594 126.40 -1.06% Aug 06 2020
I USD LU0571085686 12236113 179.78 4.38% Aug 06 2020
N USD LU1626216961 37012602 133.53 4.37% Aug 06 2020
N GBP LU1618348582 36844873 130.84 5.33% Aug 06 2020
S USD LU1572142096 35836106 150.94 4.99% Aug 06 2020
Vontobel Fund - Sustainable Emerging Markets Local Currency Bond

Fixed Income Boutique Emerging Markets Bonds

View 15 share classes Hide share classes
Share class Currency ISIN Valor NAV YTD As at
A USD LU0563307551 12061798 60.34 -1.26% Aug 06 2020
AM USD LU0563307635 12061799 51.61 -1.49% Aug 06 2020
AN USD LU1683487208 38261516 90.03 -0.88% Aug 06 2020
B EUR LU0752071745 18059822 101.22 -6.41% Aug 06 2020
B CHF LU0752070267 18059927 90.55 -7.12% Aug 06 2020
B USD LU0563307718 12061801 96.12 -1.25% Aug 06 2020
C USD LU0563307809 12061803 138.78 -1.49% Aug 06 2020
H (hedged) CHF LU0563308369 12061825 78.84 -2.69% Aug 06 2020
H (hedged) EUR LU0563308443 12061827 83.36 -2.42% Aug 06 2020
HI (hedged) CHF LU0563308799 12061834 83.72 -2.42% Aug 06 2020
HI (hedged) EUR LU0563308872 12061836 84.62 -2.35% Aug 06 2020
HN (hedged) CHF LU1683483470 38261533 92.00 -2.45% Aug 06 2020
HN (hedged) EUR LU1683487380 38261546 93.30 -2.26% Aug 06 2020
I USD LU0563307981 12061804 102.17 -0.86% Aug 06 2020
N USD LU1683483124 38261758 100.90 -0.88% Aug 06 2020

Insights

Sustainable Equities Boutique
Outlook
Emerging Markets Sustainable Investing

Emerging market equities: Outlook Q3 2019

Are emerging and developed markets increasingly correlated due to the trade war? Roger Merz, Head of mtx Portfolio Management, explains what declining correlations over the last couple of years mean for investors. Marc Bindschädler, Client Portfolio Manager, reviews Q2 and explains why he believes emerging market equities will remain attractive in Q3.

Read more

Sustainable Equities Boutique
Outlook
Emerging Markets Sustainable Investing

Emerging Market Equities: Outlook Q2 2019

After a negative 2018, emerging market equity markets rallied in Q1 2019. Roger Merz, Head of mtx Portfolio Management, explains why he believes emerging market equities will remain attractive in Q2. Thomas Schaffner, Senior Portfolio Manager, explains why he expects leading property developers in China to continue generating strong revenue and profit growth despite a relatively challenging environment.

Read more