[1] Emerging markets as represented by constituents of the J.P. Morgan EMBI Global Diversified Index, as at 30.09.2019.
Emerging markets are the fast-growing economies that drive the world’s growth. When you look at the numbers, their scale and importance are undeniable for investors.
Around 70 vastly diverse countries make up the universe of emerging markets1. They have enormous economic potential. But they are also complex and inefficient markets, both for bonds and equities. Which is why we believe it’s essential for anyone looking to invest in these markets to take an active approach.
Our investment managers are specialists in the countries they cover. They are further supported by our global research teams. This breadth of expertise allows us to uncover opportunities that others might miss.
We have developed a wide range of emerging markets investment strategies to suit investor needs, whether this is in equities or bonds, and across countries, regions, or sectors.
Emerging markets have undergone a radical transformation over the last decades paving the way for rapid economic growth and greater stability. There are risks, however.
Emerging markets are still more volatile politically and economically than developed markets and some countries have progress to make in terms of their environmental, social and governance values. It’s important to find an experienced manager to manage these risks.
Emerging market investments can be higher risk, more volatile, or denominated in a foreign currency meaning a change in exchange rates could affect their value.
Investments in fixed income may be subject to the default/credit risk of issuers, interest rate risk as bond prices move inversely to changes in interest rates, and liquidity risk. Investing in higher-yielding or non-investment grade bonds might mean the risk of the issuer defaulting on the capital repayment is higher.
Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.
Our capabilities across the globe reflect our local expertise and commitment to emerging markets.