Emerging Markets Strategic Initiatives
Emerging Markets
Active versus passive investing
•
EM fixed income and equity markets are inefficient
-
-
Benchmark indices are unrepresentative of the
investment opportunity
Active management is critical
Ashmore
Large investment universe, low index representation
US$29.6trn
13%
US$30.7trn
19%
Structural developments, e.g. removal of capital
controls, will increase index representation over the
long term
Will lead to more passive substitutes
But also support higher allocations as the asset
classes are increasingly viewed as 'mainstream'
Source: Ashmore, JP Morgan, ICE
US$4.1trn
26%
US$1.4trn
84%
US$11.6trn
11%
US$12.5trn
2%
External
External
sovereign debt corporate debt
Local sovereign Local corporate Fixed income
debt
debt
Equities
■Index market cap
■Non-index market cap
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