Emerging Markets

More perspectives can lead to better investment decisions

Good reasons for emerging markets

Emerging economies grow much faster on average than developed countries, the demographic structure of their population is typically more beneficial, and their growing middle class with increasing disposable income is boosting consumption.

 

 

More perspectives can lead to better investment decisions

The long-term perspectives are promising, but how about the short to mid-term? And how do investors focus on the right opportunities? We have asked our investment experts to provide us with their different perspectives. The more you consider all the different views, the more likely it is that you can make the right decisions for your investments. See what our experts have to say about investment opportunities.

What is an emerging market?

The term “emerging market” was introduced in 1981 by the World Bank’s International Finance Corporation (IFC), aiming to attract investment capital to those countries that needed it most. Foreign investment in the stock markets of developing countries was minimal at that time and did not yet play a role in supporting growth and modernization. There was a negative perception of these countries – called ‘Third World’ – at the time. The importance of emerging markets in the global economy has since increased significantly, and many investors are aware of their benefits.

There is no single consistent definition of an emerging market. The IMF World Economic Outlook classifies 39 economies as “advanced,” based on such factors as high per-capita income, exports of diversified goods and services, and greater integration into the global financial system. The remaining countries are classified as “emerging market and developing” economies.

 

 
 
 
 

What is the added value of emerging market investments compared with developed markets?

Choices

Insights

Quality Growth Boutique
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Viewpoint | Read | 4 min

4 Key Trends in Emerging Markets and Companies that May Benefit

Local know-how goes a long way in emerging markets (EM). Regional e-commerce and consumer companies are increasing market share by adapting to local preferences. Some quality companies are benefiting from this and other EM trends, such as expanding demographics in the online gaming market and rising barriers to entry in semiconductors.

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Asset Management
2021-10-05_EM_shifting-gears-emerging-market-prospects-are-on-track_teaser
Viewpoint | Read | 5 min

Shifting gears: Emerging market prospects are on track

Developed market equities shrugged off disruptions from Covid-19 and the threat of inflation, as stimulus continued to flow. By contrast, emerging markets are struggling as regulatory crackdowns shook confidence in China. The pendulum can swing quickly, however, and investors need to be prepared.

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