GSAM on the new drivers of emerging market growth

Investors must rethink their approach to categorising global markets, according to Luke Barrs of Goldman Sachs Asset Management.

The client portfolio manager said it is naïve to think of countries as either ‘emerging’ or ‘developed’ when, in fact, there are subdivisions. He said: “Countries like China, India, South Korea and Mexico have already emerged and should be given full credit for having done so.” While GSAM maintains its emerging markets definition for the 170 or so countries still with low per capita income and development needs, it has elevated eleven into its “growth market bucket”. This “Next 11” includes Bangladesh, Egypt, Pakistan, Indonesia, Nigeria and Vietnam. The benefit of using this th...