Funds Europe – Emerging Markets: Emerging from the deep


In China, consumers can buy sweet potatoes from local markets using a mobile device. In a recent Funds Europe article, Taimur Hyat, Chief Strategy Officer for PGIM, states “this is emblematic of the growth story in emerging markets. The internet and fintech are far more ubiquitous in EM [emerging markets]. They have leapfrogged developed markets.” The Funds Europe article titled ‘Emerging Markets: Emerging from the deep,' uniquely positions the growth engine that is purring loudly in emerging markets.

The article cites income growth as a source driving consumption, while urbanization and population growth are spurring infrastructure spending. According to Funds Europe, “a virtuous circle is created that both bolster domestic demand and boosts intra-emerging market trade,” as the middle-class’ use for services in the digital, automation, health and wellness and tourism continue to expand in countries like China, India, Indonesia, and Mexico. In a similar regard, for Taimur, “EM to EM cross-border trade represented only 25% or less of the opportunity a while back. Now it’s more like 40%.”

Funds Europe captures key themes about the opportunities and risks investors should pay attention to, as the investment universe continues to unfold in EMs. As Taimur mentions, “equities, fixed income, real estate infrastructure: we’re looking across all these avenues.”

This article was first featured in Funds Europe