Why there are still opportunities in 'underinvested' emerging markets

Over the past two years, emerging markets (EMs) have enjoyed a strong return to outperformance, driven by the first synchronised global growth episode since before the global financial crisis.

With EM economic indicators accelerating rapidly - and faster than those in developed markets - this growth has driven a dramatic improvement in earnings prospects for corporates across the board.  Vontobel's van Overfelt on the fundamentals driving EMD markets During the quantitative easing (QE) era, corporate profitability suffered dramatically as the low-growth backdrop caused top-line growth to stumble. We are now seeing a reversal of this trend as companies regain pricing power and margins expand again.  Moreover, capex requirements are low thanks to overcapacity from the p...