I think for most investors there are two ways to think about the attraction of emerging markets. The first is a diversifier, access to a set of countries with very different demography, societies, economies, and industrial setups to the developed markets. Particularly, to the home countries, where people are based.
Emerging markets, certainly, some of them have offered some significant diversification, in terms of energy balance. Some major energy producers in the emerging world. And also, countries that have different setups, with regard to their trade exposures and currency exposures.
Additionally, we think emerging markets are a relatively inefficient asset class, and there’s the potential for a disciplined investor to outperform. And that outperformance is a real opportunity for investors. And so, we think that disciplined and high-differentiated process has the ability to deliver strong outperformance, which is, itself, an opportunity for clients.
We’ve, generally, taken the view that investors should think that the opportunity within emerging markets is greater than the overall opportunity of emerging markets. With 26 countries, there’s always going to be some that are doing well, there’s always going to be some that are doing badly. And rather than owning all of them, we think that a selective approach can significantly benefit investors.