Can Emerging Markets Be Anti-Fragile

At AllianceBernstein, our grass roots research and long-term commitment to emerging market investing means we are well placed to find attractive investment opportunities across these complex and diverse markets. Our investment approach – incorporating both fundamental and quantitative research – supports our search for quality businesses with attractive outlooks at compelling valuations.

AB Emerging Markets Strategy

Seeks to achieve long-term capital growth by:

Investing primarily in stocks across emerging markets countries that offer compelling long-term return potential and attractive valuations
Taking a long-term perspective in order to capitalize on short-term market inefficiencies created by investors’ overreaction to macroeconomic, industry, or company-specific concerns
Employing a disciplined, bottom-up approach that combines fundamental research with proprietary quantitative tools to identify attractive investment opportunities

A Snaphot of EM Performance over the Past 25 Years…

The past 25 years can be divided into two distinct periods, characterized by markedly different performance outcomes. The question for EM investors is when will the tide will turn again…

Past performance and current analysis do not guarantee future results.
Left display through 30 June 2011; right display as of 31 December 2023.
Source: MSCI, S&P and AllianceBernstein (AB)

Where Will Growth Come From?

Emerging Markets Remain the Best Place to Find Economic Growth, but China Is No Longer the Only Game in Town

Past performance and current analysis do not guarantee future results.
As of 31 December 2023
Source: IMF and AB

Emerging themes driving EM performance

There are multiple themes at play driving the long-term performance of emerging markets. Read more about AB’s views on the major themes below.

Aerial view of cityscape with illuminated skyscrapers above the clouds in Dubai, United Arab Emirates at dusk.
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Dubai, United Arab Emirates, Emirate of Dubai, Persian Gulf, spectacular, metropolis, global city, business hub, tall building, digital blending, digital manipulation, Achievement, Success, Amazement, Awe, Development, Majestic, Mood, Dreamy, Progress, Scale, Style, Wealth, No People, Luminosity, Illuminated, 21st Century Style, Contemporary, Modern, Asia, Middle East, Horizontal, Colour Image, Photography, Aerial View, High Angle View, Long Exposure, City, Office Building, Skyscraper, Sky, Cloud, Moody Sky, Outdoors, Twilight, Evening, Urban Scene, Cityscape, Architecture, Capital Cities, Photography Themes, Travel, Place Of Interest, Travel Destinations, International Landmark, Corporate Business, City Skyline, Urban Overview, Cloudline, City Layout, Urban Development, Above the Clouds

Middle East Transformation

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delivery, nautical, courier, export, logistic, stacked, port, distribution, freight, seaport, box, dock, cargo, dockyard, industrial, terminal, maritime, boat, trade, commerce, crane, import, construction, structure, storage, international, supply chain, logistics transport, logistics concept, logistics technology
Logistics and transportation of Container Cargo ship and Cargo plane with working crane bridge in shipyard at sunrise, logistic import export and transport industry background

Reshoring

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absence, anticipation, beginnings, board room, business, color image, conference room, conference table, day, horizontal, in a row, indoors, nobody, office, office life, order, paperwork, photography, preparing, ready, seattle, still life, table, united states, washington
Folders and pens on meeting table

Improved Capital Management

5G central processing unit and circuit board rendering
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AB_WhenWillDigitalAssetsBeReadyForPortfolioAllocations

Innovation and AI

Portfolio Characteristics

Seeking to Outperform MSCI Emerging Markets Index by 3%–4% over Full-market Cycles, With 5%–8% Expected Tracking Error. Driven by a Consistent Value Philosophy Focused On Long-term, Normalized Earnings Power and Bottom-up Fundamental and Quantitative Research

Past performance does not guarantee future results. All portfolio statistics are subject to change.
AUM as of March 31, 2024. Style map as of December 31, 2023. Monthly return-based style analysis
Source: e-Vestment, MSCI and AB

Portfolio Manager Profile

Stuart Rae

Chief Investment Officer—Emerging Markets Value Equities

25 Years at AB|32 Years of Experience

Stuart Rae is Chief Investment Officer of Emerging Markets Value Equities since 2023 and Chief Investment Officer of Asia-Pacific Value Equities, a position he has held since 2006. He is also a long-standing Portfolio Manager for China Equities. Previously, Rae was CIO of Australian Value Equities from 2003 to 2006. He joined the firm in 1999 as a research analyst covering the consumer sector, initially working in New York and London before moving to Sydney in 2003, Hong Kong in 2006 and Melbourne in 2021. Before that, Rae was a management consultant with McKinsey for six years in Australia and the UK. He holds a BSc (Hons) in physics from Monash University, Australia, and a DPhil in physics from the University of Oxford, where he studied as a Rhodes Scholar. Location: Melbourne

Our Team

If you have any questions about our investment solutions, please contact us.

Brad Karp

Managing Director
Australia Client Group
(03)8630 2232
Brad.Karp@AllianceBernstein.com

Jeremy Browne

Managing Director
Australia Client Group
(02)9255 1230
Jeremy.Browne@AllianceBernstein.com

Christina Manonian

Managing Director

Asia Pacific Consultant Relations

(03) 8630 2227

Christina.Manonian@AllianceBernstein.com

Learn more about our other Fixed Income emerging market strategies

Contact Us

We work with clients to help them define and achieve their objectives. As markets and needs have evolved, we have too, providing global perspectives, independent research and investment discipline. Every client—everywhere—can benefit by accessing our firm’s full resources. Contact us to learn more.

Sydney / Australia Institutions

Level 32, Aurora Place
88 Phillip Street
Sydney NSW 2000
Australia

+61 02 9255 1200

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This webpage has been prepared by AllianceBernstein Australia Limited (“ABAL”)—ABN 53 095 022 718, AFSL 230 698. Information in this webpage is only intended for persons that qualify as “wholesale clients,” as defined by the Financial Markets Conduct Act 2013’, and is not to be construed as advice. This webpage is provided solely for informational purposes and is not an offer to buy or sell securities. The information, forecasts and opinions set forth in this webpage have not been prepared for any recipient’s specific investment objectives, financial situation or particular needs. Neither this webpage nor the information contained in it are intended to take the place of professional advice.
You should not take action on specific issues based on the information contained in this webpage without first obtaining professional advice. Past performance does not guarantee future results. Projections, although based on current information, may not be realized. Information, forecasts and opinions can change without notice and ABAL does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained in this webpage, ABAL does not warrant that this webpage is free from errors, inaccuracies or omissions. ABAL disclaims any liability for damage or loss arising from reliance upon any matter contained in this webpage except for statutory liability which cannot be excluded.
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