How infrastructure can help investors tap into EM potential

INFRASTRUCTURE

There are a wealth of superlatives to describe the factors which make emerging markets a potential gold mine for investors.

From the fastest growing global GDP rates, to the largest, youngest, most upwardly mobile populations, investors should have done well from these burgeoning economies. But emerging market equities have underperformed their developed peers over the last few years. The MSCI Emerging Markets index returned 6.82% over the last three years, compared to 26.33% from the FTSE 100 over the same period, for example.  The reasons why are manifold, but there is one sector where annual returns could potentially mirror the double-digit GDP rates emerging economies have produced: infrastructure. ...