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.
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.
We maintain our long-term positive bias on India. The stress in the shadow bank sector will eventually blow over and Prime Minister Modi still has a lot of political capital to push reform. However, while we previously sought to buy on dips, these dips now have to be deeper to entice us.
Libra is only a white paper, but even the leader of the free world has tweeted about Facebook’s proposed digital currency (apparently he’s not a fan). To bring a bit more clarity into this opaque topic, here’s a quick overview of what you need to know about Libra.