- Emerging markets are home to the world’s fastest-growing economies and their long-term equity returns have
attracted investment flows. In the past several years, however, many investors may have been disappointed by
lacklustre results from their emerging markets allocations.
- Investing in emerging markets companies with strong secular growth can lead to significant alpha generation over
time and we believe the best way to capture this is to focus on the structural growth latent in select emerging
- In our view, the emerging markets growth trajectory remains strong and the disconnect experienced by some
investors may be attributed to indexes and low-tracking error investment approaches that have been slow to reflect
fundamental changes in emerging markets growth dynamics.
- As most mainstream emerging markets indexes underrepresent dynamic secular growth companies, we believe
portfolios are best constructed agnostic of index geographic and sector weights.
This conference looked at whether the COVID crisis has had a pervasive impact on the investment landscape in the short and long term, and asked delegates to question whether some of the investment assumptions used in the past are still applicable in the future. It also looked at the influence of the COVID crisis as an accelerator for certain key themes driving markets; examined the way business is conducted and decisions are made; and tried to predict the impact of technological innovation on businesses, the way we work and the future of the global economy. Importantly it challenged investors to think about what needs to change, and hasn’t yet, and how the crisis can be a catalyst for new and improved business practices and investment allocations.