Emerging markets: should you invest?
From hi-tech industries to the demographic dividend, we explore the potential benefits of investing in the asset class.
The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.
Over four decades, abrdn has built deep relationships with industry and policymakers across emerging markets (EM). Today, over 100 EM professionals* networked across the globe conduct extensive analysis, including over 700 meetings** a year, to get the most complete insight into companies, countries and trends. We use technology to bring our global team together and improve our real-time insights. This enables us to keep pace with change and discover compelling opportunities at the corporate and country level.
*Both equity and debt, as at 17.01.2022
**as at 17.01.2022
Environmental, social and governance (ESG) concerns are deeply embedded in our EMD investment process. This is because we believe intelligent ESG assessment and engagement can deliver better outcomes and enhance investor returns.
The Covid-19 crisis will ensure these are more important than ever as governments, companies and society must increasingly work together.
We combine thematic and sector research produced by our central ESG Investment team with issuer level insights created by our EMD team. This dual approach helps us fully understand how bond issuers manage their strengths and weaknesses.
Given the wide range of political systems in emerging market countries, we have created a proprietary Environmental, Social, Governance and Political framework. It helps us to assess the specific political risks associated with bonds issued by emerging market governments.