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Emerging Markets

Helping capture emerging market growth with confidence

Emerging Markets

The people living in emerging markets represent 87% of the world population, yet only 45% of the global consumer spend, meaning there is the potential for further growth. Currently global investment markets don’t reflect the economic potential that is on offer. We believe emerging markets are well positioned as a good source of potential long-term returns.

Source: Factset and Bank of America Merrill Lynch Global Research Source: Schroders 14 Investment centres 130+ Investment professionals 35+ different ways to invest in emergingmarkets Markets don’t yet reflect economic importance Schroders has in-depth knowledge and extensive expertise in emerging markets Emerging markets Industrialisation and technology driving economic growth Urbanisation driving income growth Rising middle class driving consumer spending 87% World population 38% Global exports 45% Global consumer spending Source: Oxford Economics and IMF Emerging markets the facts Emerging markets a growth opportunity Source: IMF and Oxford Economics Emerging markets’ share of global GDP The drivers behind growth China is the world’s second largest stock market and third largest bond market 1935 Schroders first operated in Argentina 1946 Schroders opened office in Rio de Janeiro 1971 Schroders commences operations in Hong Kong 1994 Schroders opened office in China (Shanghai) 1990 Schroders opened office in Indonesia (Jakarta) EM representation of global equities markets today 30% EM representation of global fixed income markets today 16% 44% 2018 57% 57% 2040  Markets don’t yet reflecteconomic importance Schroders has in-depth knowledgeand extensive expertise inemerging markets Emerging markets 87% World population 38% Global exports 45% Global consumer spending Source: Oxford Economics and IMF Emerging markets the facts Emerging markets a growthopportunity Source: IMF and Oxford Economics Emerging markets’ share of global GDP China is the world’s second largest stock market and third largest bond market 1935 Schroders first operated in Argentina 1946 Schroders opened office in Rio de Janeiro 1971 Schroders commences operations in Hong Kong 1994 Schroders opened office in China (Shanghai) 1990 Schroders opened office in Indonesia (Jakarta) EM representation of global fixed income markets today 16% EM representation of global equities markets today 30% 44% 2018 57% 57% 2040 Industrialisation and technology driving economic growth Urbanisation driving income growth Rising middle class driving consumer spending The drivers behind growth 14 Investment centres 130+ Investment professionals 35+ different ways to invest in emergingmarkets Source: Factset and Bank of America Merrill Lynch Global Research Source: Schroders 

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Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.  Exchange rate changes may cause the value of any overseas investments to rise or fall.

Emerging markets generally carry greater political, legal, counterparty and operational risk.

*Source: Schroders as at 30 September 2019

 

Important Information

Schroders has expressed its own views and opinions and these may change. This material is intended to be for information purposes only and is not intended as promotional material in any respect. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Reliance should not be placed on the views and information in this webpage when taking individual investment and/or strategic decisions. All investments involve risks including the risk of possible loss of principal. Information herein is believed to be reliable but Schroders does not warrant its completeness or accuracy. Reliance should not be placed on the views and information in this webpage when taking individual investment and/or strategic decisions. Some information quoted was obtained from external sources we consider to be reliable. No responsibility can be accepted for errors of fact obtained from third parties, and this data may change with market conditions. This does not exclude any duty or liability that Schroders has to its customers under any regulatory system. Regions/sectors shown for illustrative purposes only and should not be viewed as a recommendation to buy/sell. The opinions in this webpage include some forecasted views. We believe we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know. However, there is no guarantee than any forecasts or opinions will be realised. These views and opinions may change.