Thanks to technological advances, a shift in global trade patterns and favourable demographics, emerging markets (EM) have been transformed in the past two decades. Today, we believe they now offer compelling long-term opportunities that deserve greater attention from investors in the years ahead.
Powerful long-term trends such an innovation, urbanisation and growing consumerism combined with macroeconomic fundamentals are reshaping the landscape in emerging markets. In our view, these shifts are creating a multi-decade investment opportunity.
Three key reasons to invest
Diversification
The EM investment universe contains a large and diverse range of companies, spanning varied economies, and is full of opportunities for selective investors. By ignoring the asset class, investors are arguably missing out on exposure to some of the world’s most exciting companies in key industries including financials, technology and energy.
EMbrace the future
Factors such as undemanding valuations, encouraging trends in corporate behaviour and improving fundamentals could potentially drive EM stockmarket performance in the years ahead. And with many cutting edge and fast growing companies, we think investors should consider this asset class as an essential element of their investment portfolios.
Our edge on EM
The team uses a well-established value-oriented stockpicking approach that focuses on the potential returns on invested capital companies can generate. By remaining focused on the long term, when the market is excessively focused on the short-term, we can seek to take advantage of mispriced opportunities that are created.
The value of the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested. The views expressed in this document should not be taken as a recommendation, advice or forecast.
Meet the team
Michael Bourke
Fund Manager
Michael Bourke joined M&G in 2015, after spending 10 years as an emerging markets equities analyst and portfolio manager for Legg Mason and FPP Asset Management. Before that, he worked at Deutsche Bank in roles related to equity derivatives trading. At M&G, he has worked as a fund manager and co-manager for various emerging markets funds, domiciled in London and in Luxembourg, since 2017. Michael has a BSc in Computer Science and Accounting from the University of Manchester and an MSc in International Banking and Finance from Heriot-Watt University.
George Rolls
Investment Specialist
George Rolls has been the Investment Specialist for M&G’s Emerging Market and Asian Equity strategies since 2021. Previously he had been working for the wider global equities business as a specialist and before this as a Fund Manager's Assistant for the Emerging Market team. He joined M&G in 2017 having previously worked as a Senior Performance and Risk analyst at Close Brothers Asset Management, where he also completed a graduate scheme. He graduated with a BA (Hons) in Philosophy and Politics from the University of Manchester in 2013 and is a CFA charter holder.
Key risks associated with M&G Global Emerging Markets Fund:
- The value and income from the fund's assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
- Investing in emerging markets involves a greater risk of loss due to greater political, tax, economic, foreign exchange, liquidity and regulatory risks, among other factors. There may be difficulties in buying, selling, safekeeping or valuing investments in such countries.
- The fund can be exposed to different currencies. Movements in currency exchange rates may adversely affect the value of your investment.
- In exceptional circumstances where assets cannot be fairly valued, or have to be sold at a large discount to raise cash, we may temporarily suspend the fund in the best interest of all investors.
- Further details of the risks that apply to the fund can be found in the fund's Prospectus.
