Are small caps the best way to play EM story?

EMs

Asha Mehta, portfolio manager at Acadian Asset Management, analyses the positive growth trends in the emerging market small-cap universe.

The diversification benefits and growth potential of emerging markets equities are now well-accepted concepts. As the asset class moves to the mainstream, investors are looking beyond broad emerging allocations to more specialised mandates. One area of increasing interest is emerging markets small-capitalisation equities. Investment rationale Do smaller companies offer even more potential than the broad emerging markets asset class?  While both economic and demographic growth trends in the emerging markets support the attractiveness of the broad asset class , the emerging small cap uni...