Emerging Markets

Why Emerging Markets?

Transformative Trends Drive Long-Term Growth Opportunities and Income Potential

Emerging markets can offer the potential for strong long-term growth and income generation if you have the expertise to actively seek out the most attractive investment opportunities, while managing the associated risk and volatility. Exposure to EM can also offer diversification to complement a broader developed market portfolio.

Drivers of Change and Innovation

Themes such as the continuing rise of middle-class wealth, accelerated digital transformation, nearshoring and decarbonization are set to be key growth drivers across asset classes. Many EM companies are at the forefront of innovation in these areas, presenting attractive investment opportunities.

Market and Macro Catalysts

After a challenging decade for EM, global investors are starting to reallocate due to a potential weakening of the US dollar and the anticipated rate cuts by the Fed and other central banks. Opportunities for return potential and mispricing across asset classes are also being driven by divergences in economic cycles, corporate fundamentals and currencies.

Alpha* Potential and Diversification

The variety within EM across geographies, asset classes and sectors present a unique opportunity to uncover a range of diversified, high quality investment ideas—and to capture alpha potential. EM assets also tend to have low correlation with developed market assets, offering diversification benefits and potentially reducing overall portfolio risk.

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. There can be no assurance that any investment objectives will be achieved.

*Alpha is a measure of the active return on an investment, i.e. the performance of that investment compared with a suitable market index.

Why AB for EM?

Blending Art and Science for Better Outcomes

Quantitative research uses historical data and statistical techniques to identify the areas with most return potential. Fundamental research can uncover opportunities and identify downside risks based on human experience and perspective. In our multi-asset portfolios, we also use quant and tech tools to help inform the tactical asset allocation process.

For illustrative purposes only.
Source: AB

Advanced Technology Integration

Researching emerging markets can be challenging. Tools that help identify and monitor risks or incorporate real-time data and localized insights can help to address these challenges. They are crucial for thoroughly understanding investment opportunities and optimizing performance outcomes across the different asset classes.

At AB, we have developed a suite of advanced proprietary tools that forms an integral part of our decision-making processes. From analysing currency risk to company fundamentals to enhancing trading and portfolio construction, our range of tools helps us scrutinize potential sources of alpha and improve risk management across our breadth of investment solutions.

finger pressing on a computer screen with investing data shown

Experienced Team, Global Footprint

Continuous collaboration across asset classes as well as between our global team of analysts and portfolio managers helps to provide a 360° view of emerging market opportunities.

30

Years experience innovating and investing in EM

85

Number of research analysts globally

115

Number of technology specialists

14

Local languages covered

As of 30 June 2024.

Featured Strategies

Diverse Access to Areas of Opportunity

Whether you are looking for broad emerging market exposure or a more focused allocation, our range of solutions provides access to a wide variety of investment opportunities across equity, debt and currencies.

Emerging Markets Equities
Emerging Markets Fixed Income
Emerging Markets Multi-Asset

Emerging market equities offer investors opportunities for long-term returns at what we believe are attractive valuations relative to developed markets. Our range of solutions aims to invest in quality companies that in our view are best positioned to harness the undervalued growth inherent within emerging markets.

All China Equity
Asia ex Japan
China A Shares

Emerging Market Strategic Core
Emerging Market Opportunities
Emerging Market Value

Our emerging market fixed income strategies provide investors access to the full spectrum of opportunities within the asset class, including hard and local currency, sovereign and corporate. This diversified range of solutions offers the potential for strong returns from a combination of price appreciation and income.

Emerging Market Corporate Debt
Emerging Market Corporate Debt High Grade
Emerging Market Debt Blend

Emerging Market Debt Diversified
Emerging Market Debt Hard Currency
Emerging Market Debt High Grade

Taking a multi-asset approach to emerging market investing unlocks a broader set of potential opportunities. Our solution offers clients growth and income, while managing risk through diversification and tactical asset allocation.

Emerging Markets Multi-Asset

The value of an investment can go down as well as up and investors may not get back the full amount they invested. Capital is at risk. There can be no assurance that any investment objectives will be achieved.

Find Out More About Our Strategies

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Research Insights

China’s Slowing Growth Masks a Promising Investing Landscape

Following a recent grassroots research trip, John Lin, Chief Investment Officer – China Equities, and Stuart Rae, Chief Investment Officer – Emerging Markets Value Equities, discuss their outlook on the Chinese economy and delve into where they believe the pockets of attractive opportunities can be found.

View more Insights

Emerging Market Solutions