With their positive long-term outlook, we believe emerging markets will lead, not follow, the recovery
Why Emerging Market Equities?
Emerging markets offer:
- Encouraging potential for growth over the medium and long term.
- An increasing number of well-managed companies. Companies have become more transparent. They now have stronger balance sheets and are more profitable and committed to maximising shareholder value.
- Diversification benefits for your portfolios.
- Many are far less indebted than developed countries
- Stability and growth nurtured by governments’ prudent fiscal and monetary policies
- Strong local demand: Emerging markets benefit from young and growing populations, durable consumer spending and a growing middle class
- Growing exports to other emerging economies, and increased spending and investment at home
We believe global emerging markets offer a potentially valuable investment opportunity, despite a bounce in equity markets around the world.