Over that time, the philosophy underpinning what we do hasn’t changed. We’ve always been active, always focused on growth and never allowed ourselves to get bogged down in short-term earnings estimates or price targets. Here, we revisit the evidence backing our investment philosophy as we ask ourselves, why do we invest in EM equities in the way that we do?
Active investment may be out of favour, but we would strongly suggest that EM equity is an asset class where active management works best and where having a dedicated EM manager makes sense. Being selective is critical, particularly now we are long past the China fuelled pan-EM boom. While investing in EM means you are gaining exposure to the world’s fastest growth economies, GDP growth doesn’t always lead to high stock market returns. Take Malaysia, for example, which has grown its GDP at an impressive 5.3% p.a. in US dollar terms over the last 20 years, and yet its stock market has contracted by 1.5% p.a.
Read the complete white paper at the link beneath Related Files