A question of degree

EMERGING MARKETS

Bullish sentiment on EMs tempered by concepts of decoupling and globalisation

Emerging markets fund managers agree there are plenty of reasons to be excited about the sector, but there is less consensus on how important the concepts of decoupling and globalisation are to the story. Speak to any emerging markets fund manager and you will face a barrage of reasons to be optimistic about the outlook for their specialist subject. Some – for example, supportive demographics or improving standards of living – seem so intuitive one accepts them almost without question. With others – for example, the theory of “decoupling” – one can find oneself thinking: “OK – but, even ...