In 1988, the MSCI Emerging Markets index comprised just 10 countries, accounting for a tiny 0.9% of the MSCI All Country World index. Today it is made up of 27 countries, accounting for 12% of the world index.
This growth has transformed asset allocation models. Emerging markets, which tend to be less well researched than their developed counterparts, have become a critical alpha hunting ground.
This expansion has made it impossible to view emerging markets homogeneously, with the pandemic underlining the extreme divergences between the likes of Brazil at one end of the spectrum and China at the other.
In this special edition of
Citywire Wealth Manager, we showcase the richness of diversity on offer in emerging markets. Our roundtable debate brought together emerging market specialists and investment managers to discuss how they are allocating to these markets, as the world battles to recover from the trauma of the pandemic.