Emerging Markets

What are Emerging Market Economies?

 

Emerging markets, also known as emerging economies or developing countries, are nations which do not yet meet the standards of an advanced market. They are moving towards this status with rapidly increasing industry production, social development, and economic growth. As they develop, their involvement and influence on the wider global economy intensifies.

 

Emerging market economies are defined as an economy with low-to-middle per capita income. These countries have the potential for huge growth and, therefore, offer a high return for investors. However, they are also very high risk investments. Corruption, volatile stock markets and limited equity opportunities mean these economies are fragile.

 

While definitions and classifications do vary, the International Monetary Fund identifies 152 emerging market economies. Some of the countries widely accepted as emerging markets include many of the Americas, such as Brazil, Colombia and Mexico, as well as countries such as China and Russia.

 

Emerging Market News from LGIM

 

As one of the UK’s leading investment managers, LGIM offers knowledge and experience that can bring real benefit to investors looking to understand economics, policy and politics in emerging markets.

 

Find the latest research on future paths of emerging markets around the world, from currency volatility to financial market analysis.

 

Our Asset Allocation team includes dedicated and accomplished emerging market economists and strategists whose clear focus is to assess the macroeconomic environment across the emerging world. Our economists then work with our team of strategists and portfolio managers to translate their views into what this means at a portfolio level.

Economics

Argentina: in economic quicksand?

Last year's market darling, Argentina, now finds itself in a vicious cycle of a weakening currency, rate hikes, lower growth and higher debt. So how can the country avoid a liquidity crisis turning into a full-blown crisis?

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Portfolio Thinking

Adios Mexico – for now

Now that the investment case has played out, I've caught up with an economist, a strategist and a fund manager as they say adiós to Mexican assets.

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Macrobites

Everything under the sun

As the global economy moves towards late cycle, ensuring that multi-asset portfolios remain suitable for investors means managing a whole range of risks.

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Economics

Could Brazil be next?

After Argentina and Turkey, could Brazil be the next emerging market (EM) that goes into crisis? These events are not linked – each of these countries currently has idiosyncratic weaknesses. In the case of Brazil, the fiscal deficit is in the spotlight, coupled with the presidential elections in October.

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Strategy

Turkey under the grill

The temperature's roasting and the Turkish economy is under the spotlight. With President Erdoğan fighting financial markets, the contagion is spreading fast. So which parts are overdone and are there any tempting morsels worth trying? Here are our latest thoughts from Bloomberg TV. 

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Portfolio Thinking

Emerging by name, emerged by nature

Emerging market assets have long been a source of both potential profit and peril for investors. 2017 saw an incredible streak of capital inflows into emerging market equities, bonds and currencies. Whilst returns are still characteristically volatile, this historically maverick asset class has become more mature and resilient than ever before, as was highlighted during February's market sell-off.

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Portfolio Thinking

Do you have a Scooby Doo about the active / passive debate?

The active versus passive debate consistently generates conflicting advice. The potential for active managers to side-step a falling market is one frequently cited factor. But have regional equity funds actually outperformed their respective indices during market corrections?

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