Emerging markets are too varied to treat as a homogeneous asset class strategy. Every country comes with its own distinct culture, idiosyncrasies, risks and opportunities and requires a different and considered approach.
At T. Rowe Price, our on-the-ground experience affords us a nuanced and selective view. We are ‘investment locals’, not tourists. Each country is our home, each opportunity our clients’ potential gain.
Economies like China, India and many others provide rich ground for long-term investors, who can no longer afford to underestimate the opportunities they offer, nor the promise they bring. Need some examples?
Trade volumes are expected to shift towards emerging markets, especially as annual consumption in emerging economies is poised to reach $30tn by 2025.1
By 2030, seven of the world’s ten largest economies by GDP will be emerging markets.2
Education standards in emerging markets are improving significantly on the back of economic growth and strong public investment.3
1 McKinsey: Winning the $30 trillion decathlon 2 Standard Chartered 3 Euromonitor International: Rising Education Standards in Emerging Market Economies Will Support Income and Economic Growth
1McKinsey: Winning the $30 trillion decathlon 2Standard Chartered 3Euromonitor International: Rising Education Standards in Emerging Market Economies Will Support Income and Economic Growth
Emerging markets are less established than developed markets and therefore involve higher risks.
Pioneers in emerging markets
We have been investing in emerging markets (EM) since 1980, the infancy of the asset class strategy. Today, we manage more than US$14.5 billion* in developing markets for our clients across equity, fixed income and multi-asset investment strategies.
At T. Rowe Price, the active collaboration between our equity, fixed income and ESG analysts means we have true cognitive diversity, 360-degree perspectives, and experience across EM cycles.
Our analysts are experts in their fields - with backgrounds ranging from medicine to geology - who foster long-term partnerships with companies and governments in developing markets. Our fixed income research team often offer what we call “weather forecasts” for each individual EM economy. Incorporating this top-down view is particularly useful when analysing individual companies.
Our on-the-ground experience affords us a nuanced and selective view. With 199 equity research professionals, from 26 nationalities speaking 28 languages, we are ‘investment locals’, not tourists.
* Dedicated Emerging market equity and fixed income AUM include assets managed by T. Rowe Price Associates, Inc. and its investment advisory affiliates as of 31 December 2022.
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