Emerging markets: active or passive?

Article by Dr. Rebekka Haller

Emerging markets are growing significantly faster than industrial countries—and are currently benefiting doubly from monetary policy impulses coming out of the US. But not all emerging markets are alike: while China faces structural challenges, India remains the main engine of growth, and Latin America is profiting from stable commodity prices. We demonstrate why a targeted allocation to emerging markets can currently add value to portfolios—and why active fund managers clearly have the advantage in these heterogeneous markets. Discover which regions we prefer, why we deliberately avoid China, and why active management in emerging markets offers better long-term opportunities.