EMERGING MARKETS AT THE CROSSROADS
A radical shift in the forces shaping emerging market growth will require investors to take a different investment approach from what may have worked in the past. Increasingly, discovering investment opportunities will be rooted in the ability to capture the alpha from the new growth drivers, rather than in chasing the beta of the broad universe.
The growing importance of trade between emerging markets, as epitomized by China’s New Silk Road initiative.
The demographic dividend, particularly in South Asian and African emerging markets with an expanding working-age labor force.
The domestic consumption needs of the rising EM middle class, which is increasingly urban, aspirational, connected and wealthy.
The opportunities presented by digital disruption, especially in countries that make the necessary investments in broadband, education and regulatory reform.
Harnessing the power of deeper and broader local capital markets, which are unlocking financing opportunities for local firms.