Did you know? There are many exciting companies and industries in emerging markets.

A common misconception is that investors in emerging markets are limited to traditional old-world industries. This could not be further from the truth – in fact, there are many exciting, cutting-edge industries available to investors in EM.

Our portfolio is currently exposed to five major thematics:

Chart 1: Exposure by thematic, Ox Capital Dynamic Emerging Markets Fund, as at July 2025.

Source: Ox Capital Management, as at July 2025.

1. Artificial intelligence: the likes of TSMC, Samsung and Hynix are critical enablers of the AI revolution.
2. Financials and fintech: young economies such as India, Indonesia, and Vietnam stand to double their GDP in the coming years. Strong domestic banks are great proxies to participate in the rising fortunes of these countries.
3. Megatrends: the middle-class population in emerging markets is set to double over the next decade.
4. Internet champions: there are many great internet-based businesses at the forefront of their respective industries available to investors.
5. Medical technology and healthcare: aging populations and rising wealth will lead to insatiable demand for access to better healthcare in the coming years.

One particularly exciting opportunity for investors is the internet sector in China – despite being comparable in both business quality and long-term growth outlook, many of these internet champions are trading at a steep discount to their counterparts in the US.

Chart 2: 1-year forward P/E ratio estimates for selected internet companies, 2025-2027, as at August 2025.

Source: Bernstein, Ox Capital Management, as at August 2025. This is not a recommendation to buy, sell or hold any financial product, security or instrument.

At Ox Capital, we continue to believe that there are many exciting opportunities available in emerging markets – and that now is the time for investors to sharpen their pencils and consider the opportunities an EM exposure can bring to portfolios.

At Ox Capital, we are focused on quality companies with long term growth which are available at inexpensive valuations across emerging markets. Current valuations are providing lots of interesting opportunities. Let us know if you would like to understand specifically where we are finding the opportunities!

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