The opportunities arising from EM volatility

Number of factors to watch for

The long-term secular drivers for the emerging market (EM) asset class remain firmly in place, notwithstanding any recent uptick in volatility.

We are confident that as the growth premium to developed markets will sustain, EMs are more likely to be the primary drivers of global growth over the next decade.  Although EM equities have evolved into mainstream asset classes over the past two decades, they are still woefully under-represented both in investor allocations and in the traditional market indices.  EM countries account for up to 80% of the global population and contribute about 60% of the world's growth, yet they constitute only 10% of the entire global market cap. This has to change. Gallery: What will frontier mar...