Emerging Markets

Access global growth and enhance diversification

Why emerging markets?

Over the past 15 years, emerging market (EM) equities have experienced strong performance. And through a combination of demographic advantages, local market trends and increased index diversification, they may be poised to continue performing well.

While much of the developed world contends with aging societies, emerging markets tend to be younger. Many are home to growing working-age populations, which bodes well for their labor pools and consumer spending. Additionally, increasing middle class wealth and the pace of urbanization in these areas should power global spending for years to come.

Beyond these trends, EMs have experienced several improvements in recent years. The energy and materials sector used to dominate emerging stock markets. Today, they are more diversified. For example, information technology is a key sector of modern EM indices. Corporate governance standards are also improving, which could bolster investor confidence.

Three important emerging market themes

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Consumer is king in these vast domestic markets

Consumption in EM cities is expected to generate about 56% of consumption growth between 2015 and 20301

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Emerging markets help drive mobile growth

The number of unique mobile subscribers is expected to reach 5.9 billion (or 71% of the global population) by 2025, driven in large part by emerging markets2

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Infrastructure investment is shifting

Nearly two-thirds of global infrastructure investment though 2035 will be in emerging economies3

Presenting the Aberdeen Emerging Markets Fund

  • A concentrated portfolio of high-conviction stocks with long-term value based on quality and price
  • A combination of broad market coverage and deep company level insights of our EM Equity team
  • An intense focus on company fundamentals, which can help drive performance over the long term

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Sources: 1 McKinsey Global Institute, March 2016. 2 Source: GSMA – The Mobile Economy 2018 3 McKinsey Global Institute, October 2017. Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.