Skip to main content
PGIM LogoPGIM Logo
    • Megatrends
    • Annual Best Ideas
    • Quarterly Market Outlooks
    • Market Events
    • Thought Leadership
    • Events & Webinars
    • ESG Investing
    • Investing in Alternatives
    • Reaching for Yield
    • Investing in Emerging Markets
    • Clients We Serve
    • Defined Contribution
    • Financial Advisors
    • Institutional Relationships
    • Advisory Solutions
    • Global Locations
    • Contact Us
    • Overview
    • Leadership
    • History
    • Diversity, Equity & Inclusion
    • Global Locations
    • Jennison Associates
    • PGIM Fixed Income
    • PGIM Private Capital
    • PGIM Real Estate
    • PGIM Quantitative Solutions
    • PGIM Investments
    • Montana Capital Partners
    • PGIM DC Solutions
    • Contact Us
    • Subscribe
    • Request for Information
    • Careers at PGIM
    • Job Opportunities
    • All News
    • Press Releases
    • In the News
    • Facts & Figures
    • Media Contacts
abstract globe

Investing in Emerging MarketsInvestinginEmergingMarkets

WHY PGIM FOR EMERGING MARKETS

Institutional investor interest in increasing allocations to emerging markets (EM) continues to grow rapidly, not surprising given the sheer size and economic growth potential. The expansion of the working-age labor force, changes in consumption needs of the rising middle class, opportunities presented by digital disruption, increasing urbanization trends, and improvements in healthcare will all play a vital role in the economic expansion of EM in the coming years.

As a result, navigating the risks and opportunities offered by EM will be an increasingly important driver of portfolio returns as it continues to offer long-term investors an array of attractive opportunities across asset classes. But tapping into those opportunities will require taking a significantly different approach, and investors need a partner who understands the complexities of investing in EM. At PGIM, we believe investors need to abandon the old top-down country view in favor of a bottom-up approach across sectors and themes.

INVESTING IN EM ACROSS ASSET CLASSES

Through Everbright PGIM Fund Management Co., a joint venture with the Everbright Group, one of the largest state-owned conglomerates, we have served Chinese investors since 2004. Everbright PGIM, based in Shanghai, currently manages assets for institutions and individual investors through long-standing relationships with local institutions and intermediaries, including top-tier banks, insurance companies, securities firms, and e-commerce platforms. Everbright PGIM’s experienced investment teams in China manage an array of strategies across various asset classes, combining local expertise and a global perspective to help investors meet their investment objectives. We are committed to strengthening Everbright PGIM’s competitive positioning and to providing investors with high-quality and differentiated investment solutions and capabilities.

Learn more

Headquartered in Taipei, Taiwan since 2000, PGIM SITE is committed to offering institutional and individual investors comprehensive, customized investment solutions to meet their needs, while building long-term client relationship and trust. As one of the top equity and discretionary investment managers in Taiwan, PGIM SITE offers locally focused and international funds across equity, fixed income, and multi-asset leveraging global capabilities of PGIM. With dedicated and experienced investment teams on the ground, we understand the local nuances in the Asian markets.

Learn more

PGIM India, a wholly owned business of PGIM, is a full-service asset manager offering differentiated investment products and solutions across equity and fixed income since 2010. With large presence in 27 cities throughout India, we strive to serve institutional and retail clients and intermediary partners with superior customer service and customized solutions. In addition to domestically managed equity, fixed income, and balanced funds by our seasoned investment teams, we offer global equity, emerging market, and global real estate funds combining the global capabilities of PGIM with local expertise to help Indian investors diversify their portfolios. 

Learn more

Strong structural tailwinds continue to position emerging markets as a source of long-term opportunity for equity investors—and they are expected to continue to lead global economic growth higher. 

The Jennison emerging markets strategy takes a concentrated and unconstrained approach to investing in emerging markets. Portfolios consist of 35-45 holdings and are benchmark, sector, and country agnostic, which has led to a historically high active share. The portfolio managers believe that investing in emerging markets companies with strong secular growth can lead to significant alpha generation over time. Emerging markets offer numerous high-growth companies, and ongoing demographic changes and innovation should lead to constantly evolving investment opportunities, which we believe are best identified from the bottom up.

Jennison’s emerging markets team has an exceptionally deep knowledge of emerging markets companies, industries, and the operating environment. Their research often leads them to identify secular trends early and engage opportunity sets that are different than the index.

Learn more

We believe PGIM Fixed Income offers the following competitive advantages in the management of emerging markets debt strategies:

  1. Our team is well-resourced, stable, and offers a suite of EMD strategies. The team is comprised of 30+ portfolio managers, economists, and corporate analysts, many of whom are exclusively dedicated to emerging markets. Our stable team manages EM Hard Currency, Local Currency, EM Corporate, Total Return, and Blended strategies, providing options for our clients.
  2. A state-of-the-art sovereign analysis framework has been developed by our in-house economics team. Rather than using Moody’s or S&P ratings, PGIM Fixed Income’s economists produce their own proprietary credit rating for each country using 21 independent quantitative factors supplemented by our factor qualitative assessment. These ratings tend to lead the rating agencies, providing a critical edge.
  3. ESG is embedded in the investment process. ESG factors are integrated into our credit rating and relative value process for sovereigns and corporates.
  4. Our proprietary risk framework is fully integrated between the portfolio management and risk management groups and is completely independent. This can ensure portfolios are managed within predetermined risk thresholds.
  5. Significant market presence: PGIM Fixed Income manages more than $40 billion across dedicated emerging market bond strategies. We believe the resulting scale and our strong relationships with brokers / dealers enable us to take advantage of market opportunities.
Learn more

PGIM Real Estate’s global platform, combining a global perspective with local expertise, uniquely positions us to deliver innovative solutions to our clients in both developed and emerging economies. Our history of operating in emerging markets around the world – from pioneering the logistics space in Mexico to establishing an on-the-ground presence in Singapore more than 20 years ago – is backed by longstanding relationships with local partners, consultants, banks and brokers.  

This deep local knowledge, rooted in research and backed by decades of investing and financing experience, enables us to capitalize on short- and long-term opportunities across both real estate equity and debt in the emerging markets and sectors in which we have the highest conviction.

Learn more

At PGIM Quantitative Solutions, we’ve carefully designed a framework that allows us to capture alpha opportunities in Emerging Markets (EM) across securities, industries and countries, while balancing against adverse risk outcomes.

Adapting to company fundamentals

  • The starting point for PGIM Quantitative Solutions' framework is to recognize that fundamentals matter. As markets move, different fundamentals become more significant measures for different types of companies. Consequently, different types of signals will be more effective at detecting investment opporutnities/mispricings. 
  • In determining which fundamentals are the most important for which types of companies, we turn to valuation theory to guide us. We find that valuation-oriented signals are more effective at evaluating the future performance prospects of slower-growth companies, while growth signals are more effective at evaluating the future performance prospects of fast-growth companies.
  • PGIM Quantitative Solutions' research and investment experience has shown that an adaptive bottom-up stock selection framework is essential to capturing inefficiencies within equities, and to driving consistent performance over the long term.

Blended approach of top-down dynamics and bottom-up selection

Within EM, a top-down investment approach can complement bottom-up stock selection as the return opportunities that arise between countries and industries can be significant. We combine a top-down element to our investing framework and believe this combination positions our EM strategies to better navigate even more varied market conditions.

Within our overall investment approach, we believe that bottom-up stock selection is of primary importance in exploiting inefficiencies within EM equities and in driving consistent performance over the long term. Therefore, we maintain a dominant weight towards bottom-up insights.

Diversified, style-pure portfolio with risk controls

At PGIM Quantitative Solutions we recognize that implementation is key to success and we believe the most consistent way to deliver alpha in EM is within a well-diversified, style-pure portfolio with risk controls. Our portfolios maintain strict limits on security active exposures, and controls on industry and country exposures. These controls are calibrated to balance alpha opportunities with protection against adverse security, industry and country outcomes. Our final portfolios have a high level of diversification.

Learn more

CHINA INVESTMENT SYMPOSIUM

The China Investment Symposium aims to bring together a select group of global institutional investors, senior investment decision makers, and industry leaders to examine China's rising role in the world economy.

Learn more

Latest Insights

View all
Information Asymmetry in Emerging Markets
Equity

Information Asymmetry in Emerging Markets

Jan 7, 2022

Gavin Smith and Patrick McDonough discuss how using information asymmetry can lead to alpha generation in Emerging Markets.

Is China Debt “Too Big To Fail?”
China Investment Symposium

Is China Debt “Too Big To Fail?”

Dec 9, 2021

During the Winter 2021 installment of PGIM’s China Investment Symposium series, a panel of experts examine the dramatic rise in China’s debt.

Emerging Markets Debt - Glass Half Empty or Half Full?
Fixed Income

Emerging Markets Debt - Glass Half Empty or Half Full?

Oct 5, 2021

In this episode, Mike Collins welcomes Cathy Hepworth, CFA, Head of Emerging Markets Debt to discuss a variety of current topics impacting the EMD sector.

Sources of data (unless otherwise noted) are as of 06/30/2021. 

1. Assets cited above include assets managed by joint ventures in which PFI does not have a controlling interest, and therefore does not correspond to assets under management and administration as reported by PFI. AUM for each business may also include assets sub-advised by other PFI units. Total AUM may differ from the sum of the underlying business AUM due to rounding. 

  • Insights

    • Megatrends
    • Annual Best Ideas
    • Quarterly Market Outlooks
    • Market Events
    • Thought Leadership
    • Events & Webinars
  • Investment Themes

    • ESG Investing
    • Investing in Alternatives
    • Reaching for Yield
    • Investing in Emerging Markets
  • Clients

    • Clients We Serve
    • Defined Contribution
    • Financial Advisors
    • Institutional Relationships
    • Advisory Solutions
  • About

    • Overview
    • Leadership
    • History
    • Diversity, Equity & Inclusion
    • Global Locations
    • Contact Us
    • Subscribe
    • Request for Information
  • Careers

    • Careers at PGIM
    • Job Opportunities
  • Newsroom

    • All News
    • Press Releases
    • In The News
    • Facts & Figures
    • Media Contacts
PGIM Logo
  • Terms & Conditions
  • Privacy Center
  • Accessibility Help
  • UK Regulatory Disclosures
  • Netherlands Regulatory Disclosures
  • Cookie Preference Center

For Professional Investors only. All investments involve risk, including the possible loss of capital.

It is for informational and educational purposes only and should not be construed as investment advice or an offer or solicitation in respect of any products or services to any persons who are prohibited from receiving such information under the laws applicable to their place of citizenship, domicile or residence. PGIM, Inc., is the principal asset management business of PFI and is a registered investment advisor with the US Securities and Exchange Commission(SEC). Registration with the SEC does not imply a certain level of skill or training.  PGIM is a trading name of PGIM, Inc and its global subsidiaries.    

In the United Kingdom, information is issued by PGIM Limited with registered office: Grand Buildings, 1-3 Strand, Trafalgar Square, London, WC2N 5HR. PGIM Limited is authorised and regulated by the Financial Conduct Authority (“FCA”) of the United Kingdom (Firm Reference Number 193418). In the European Economic Area (“EEA”), information is issued by PGIM Netherlands B.V. with registered office: Gustav Mahlerlaan 1212, 1081 LA  Amsterdam, The Netherlands. PGIM Netherlands B.V. is, authorised by the Autoriteit Financiële Markten (“AFM”) in the Netherlands (Registration number 15003620) and operating on the basis of a European passport. In certain EEA countries, information is, where permitted, presented by PGIM Limited in reliance of provisions, exemptions or licenses available to PGIM Limited under temporary permission arrangements following the exit of the United Kingdom from the European Union. These materials are issued by PGIM Limited and/or PGIM Netherlands B.V. to persons who are professional clients as defined  under the rules of the FCA and/or to persons who are professional clients as defined in the relevant local implementation of Directive 2014/65/EU (MiFID II).  

In Japan, investment management services are made available by PGIM Japan, Co. Ltd., ("PGIM Japan"), a registered Financial Instruments Business Operator with the Financial Services Agency of Japan. In Hong Kong, information is provided by PGIM (Hong Kong) Limited, a regulated entity with the Securities & Futures Commission in Hong Kong to professional investors as defined in Section 1 of Part 1 of Schedule 1 (paragraph (a) to (i) of the Securities and Futures Ordinance (Cap.571). In Singapore, information is issued by PGIM (Singapore) Pte. Ltd. (“PGIM Singapore”), a Singapore investment manager that is licensed as a capital markets service license holder by the Monetary Authority of Singapore and an exempt financial adviser. These materials are issued by PGIM Singapore for the general information of “institutional investors” pursuant to Section 304 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”) and “accredited investors” and other relevant persons in accordance with the conditions specified in Sections 305 of the SFA. In South Korea, information is issued by PGIM, Inc., which is licensed to provide discretionary investment management services directly to South Korean qualified institutional investors on a cross-border basis.    

Prudential Financial, Inc. (PFI) of the United States is not affiliated in any manner with Prudential plc, incorporated in the United Kingdom or with Prudential Assurance Company, a subsidiary of M&G plc, incorporated in the United Kingdom. PGIM, the PGIM logo and Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide.  The information on this website is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In making the information available on this website, PGIM, Inc. and its affiliates are not acting as your fiduciary.    

©2021 PFI and its related entities.