Livewire Fund in Focus

23 March 2022

3 reasons to own emerging markets

View the original post including full transcript on Livewire.

Emerging markets make up over 70% of global growth and around 60% of global GDP. However, they make up less than 13% of the MSCI All Countries World Index. This just goes to show that emerging markets are under-invested.

They’re also attractively valued. Despite a 40-year history of outperformance, emerging markets have underperformed developed markets over the last 10 years, leaving valuations looking far healthier.

Emerging markets also offer attractive growth profiles, with some economies well placed to handle inflation.

In this Fund in Focus, OxCap’s founder and CIO Dr Joseph Lai explains how the Ox Capital Dynamic Emerging Markets Fund is finding ESG-friendly, mispriced opportunities in Asia and beyond. He also shares one market that’s in a prime position to benefit from rising commodity prices, and a company that’s set to profit from huge growth in mobile internet. 

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