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
Emerging Markets Megatrend Image
Megatrends

Emerging Markets at the CrossroadsEmergingMarketsattheCrossroads

Jun 12, 2017

As emerging markets diverge, PGIM believes investors need to abandon the old top-down country view in favor of a bottom-up approach across sectors and themes.

  • Download White Paper
Share
  • Mail
  • LinkedIn
  • Twitter
  • Copy URL

Share

Over 30 PGIM investment professionals, as well as leading academics and policy-makers from around the world, were interviewed to debate the most striking developments across emerging markets (EM), the likely winners and losers, and the most attractive investment themes arising from the evolution of EMs.

The developed market-oriented, export-led growth model that propelled EM growth since the 1980s is stalling due to a variety of factors. Increasingly, EM countries will be the masters of their own fate, with growth dependent on their individual abilities to capture domestic and regional opportunities. Navigating the risks and opportunities offered by this new EM order will be an increasingly important driver of portfolio returns over the long term.

Opportunities and Risks 

If emerging markets can no longer ride on the coat-tails of developed-market economic growth, global trade liberalization or Chinese supply chains, where will growth come from—and what are the opportunities and risks investors should focus on?

  • 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. Capturing future EM opportunities will require taking a significantly different investment approach.

The Monolithic View of Emerging Markets is Obsolete

Learn more
PGIM Megatrend Series

Long-term views on the investment implications of global megatrends.

Learn more

Learn more
The New Winds of Trade

In collaboration with Bloomberg, this article captures a holistic view of the investment opportunities created by trade between emerging markets.

Learn more

Watch the Video Series

Small Cap, Big Value: Emerging Market Stocks

Ed Keon, Managing Director for QMA, discusses how small cap emerging market stocks represent an opportunity for their long-term growth potential and for portfolio diversification.

Emerging Markets Debt—The Re-Rating Opportunity

Arvind Rajan, Head of Global and Macro for PGIM Fixed Income, shares three perspectives on the long-term prospects of emerging vs. developed markets.

Opportunities in Emerging Market Real Estate

Lee Menifee, Head of Americas Investment Research for PGIM Real Estate, highlights the trends in emerging markets that are creating investment opportunities for real estate, including the emergence of a middle class and the growth of that middle class.

More from The PGIM Megatrend Series

The Technology Frontier
Megatrends

The Technology Frontier

Oct 17, 2018

We are living in an era of unprecedented technological change.

Longevity
Megatrends

Longevity

Nov 7, 2016

Global aging has profound consequences for individuals, businesses, governments and investors. Explore the investment implications of this megatrend.

The End of Sovereignty
Megatrends

The End of Sovereignty

Jul 17, 2018

Insights on the escalating tussle between globalization and nationalism, and the investment implications for global financial markets.

  • 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.