Views and Analysis

Challenges and opportunities in GEM

Global Emerging Markets accounts for more than 50% of the world’s GDP and around 80% of growth in global GDP. At the same time, GEM equities are under-represented in global stock markets as they only account for 11% of the MSCI All Countries World Index. Therefore we believe it is just a matter of time before more funds are committed to the asset class. Although recent performance was disappointing, the investment case is still valid, valuations are compelling and GEM equities are under-owned.