Emerging Markets

Offer tremendous possibilities for long-term investors.

Emerging Markets are an exciting and attractive asset class

They are home to 6 billion people, or 85% of the world’s population. Yet they only account for 60% of global GDP. These economies may only be a small part of the global system today, but they are growing rapidly, driven by the powerful forces of economic catch up.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested. Investing in emerging markets is generally considered to involve more risk than developed markets.

World population
%
World GDP
%
World market cap
%

Source: IMF data mapper, 2019 estimates,
GDP based on PPP share of the world, MSCI.

Growth of the Middle Class

The young, growing population and the rise in per capita incomes will unleash a huge wave of domestic consumption. Development in emerging markets over the last 50 years has been dramatic, but the weight of the opportunity still lies ahead.

With billions of the world’s inhabitants joining the consuming classes, we are only at the start of this process.

Global population by income

Source: Reuters, as at 30-Apr-17

Domestic Opportunity

 
For companies that operate in emerging markets the opportunities can be enormous.

Growth rates are unlikely to be be linear. But, the aggregate pool of consumption in these markets is set to increase on a scale the planet hasn’t seen before.

Our approach is to own the companies best placed to benefit from these developments.

Population by UN development group

Source: United Nations, Department of Economic and Social Affairs, Population Division (2019). World Population Prospects 2019, Online Edition.

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