Investing in Emerging Markets is hardly a new concept for investors across Europe; most investors now recognise the potential long term returns benefits of including emerging markets exposure within their portfolios. Although the story remains compelling, we believe there is a shift in dynamics that could change the way we invest in emerging markets.
Emerging markets have "grown up", the larger emerging market companies have become more correlated to the rest of the world while many sovereign debt issuers have established enviable fiscal positions. It has also become more challenging to find active managers who have capacity along with a strong track record of out performance. For equity investors this has led to strong inflows into passive emerging markets strategies, a quest for a broader emerging market exposure, and a plethora of new passive approaches to accessing emerging markets. In fixed income the time is now ripe to bring indexing discipline to a maturing market.
We will share our insights on:
• Changing dynamics and governance needs in Emerging Markets
• Alternative approaches to Emerging Markets; news indices, access through developed market exposure
• Efficient implementation given the changing dynamics
• The growing suitability of index strategies to local currency Emerging Debt Markets
There are many things to consider when investing in Emerging Markets. Northern Trust’s experts will highlight the evolving opportunity set, ways in which to get exposure and some of the new alternatively weighted indices. Finally we will take a look at implementation strategies for getting efficient beta exposure to emerging markets.