Thought Capital

Are You Under Allocated to Emerging Markets?

We currently see a potentially advantageous entry point for long-term-oriented investors.

Emerging Markets: Bright Spots on the Horizon

Over the past decade, emerging markets have not disappointed on the growth front, accounting for almost two-thirds of the world’s gross domestic product (GDP) growth. Hence, emerging markets today represent a crucial engine of global economic growth, with incomes following the upward trajectory witnessed in much of the developing world years ago.

While emerging markets have experienced a surge in economic growth rates, rising incomes, and larger profit pools, the market has ignored these supportive fundamental metrics for the past years. As a result, this has created an exciting valuation for EM equities. 

In addition to the historically attractive valuations seen today across EM equities, we are equally impressed by the leading companies we see across the investable universe that we believe can benefit from the unique secular opportunities of these nations, such as urbanization, income growth and technological advancement. 

In our view, some of the most significant future winners across the space include companies harnessing the power across many of these markets and delivering positive outcomes through the cycle.

To learn more about our team’s views, download our full report here.

While emerging market countries have delivered on their side of the growth bargain year after year, their respective equity markets have trailed behind, resulting in a potentially advantageous entry point for long-term-oriented investors.

Damian Bird, CFA
Head of Team, Portfolio Manager & Analyst

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Important Disclosures

This information is provided for illustrative purposes only. Opinions and views expressed constitute the judgment of Polen Capital as of August 2023 and may involve a number of assumptions and estimates which are not guaranteed and are subject to change without notice or update. Although the information and any opinions or views given have been obtained from or based on sources believed to be reliable, no warranty or representation is made as to their correctness, completeness or accuracy. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice, including any forward-looking estimates or statements which are based on certain expectations and assumptions. The views and strategies described may not be suitable for all clients. This video does not identify all the risks (direct or indirect) or other considerations which might be material to you when entering any financial transaction.

The information in this video has been prepared without taking into account individual objectives, financial situations or needs. It should not be relied upon as a substitute for financial or other specialist advice. This video is provided for informational purposes only and may not be reproduced in any form or transmitted to any person without authorization from Polen Capital Management.

Past performance does not guarantee future results and profitable results cannot be guaranteed.