A Voracious Appetite for Growth in Emerging Markets
We believe there remains significant room to run for growth in emerging markets. GDP has continued to rise and the public equity market’s percentage share has risen alongside it.
- Understanding just how far these markets have come in the last few years in terms of total trading activity is astounding, in our opinion. Liquidity has been increasing and the fishing pond today is twice as big.
- The last few years have seen a significant rise in trading activity, with emerging market equities averaging $23 trillion in annual trading volume—four times the average of the 2010s—and surpassing developed markets ex US, which have stagnated since 2009.
- The opportunity set for emerging market large-cap investors has expanded, with the number of companies valued at $10 billion or more doubling from roughly 250 to approximately 500.
Understanding the growth potential in emerging markets is one piece of the picture, the other pieces are put into place when you choose to work with an investment manager who not only deeply understands the global markets but also puts client alignment at the forefront.
Takeaways
— Increase in liquidity
—Significant rise in trading activity
—Expanded opportunity set for large-cap investors
Want to Learn More?
Connect with us for our recent Emerging Markets research.
Total Dollars Traded (USD TR)
Total Dollars Traded (USD TR)
Source: Bloomberg. Total volume computed based on each security’s primary listing. Calculations may not reflect all trading volume inclusive of non-primary listings for the given security. For calendar year 2023, we estimate the full-year trading volume by annualizing the trading volume realized from January 1, 2023 through November 30, 2023. Actual results may differ from any projections illustrated above.
More Information
Learn more about our Emerging Markets Strategy
| TOTAL RETURNS AS OF 30 APR 2024 | 1 MO | 3 MO | YTD | 1YR | 3YR | 5YR | SINCE INCEPTION (01-DEC-14) |
| Emerging Markets Equity Strategy (net of fees) % | 0.04 | 7.25 | 10.64 | 35.16 | 3.97 | 10.03 | 7.30 |
| MSCI Emerging Markets Index % | 0.45 | 7.83 | 2.83 | 9.88 | -5.69 | 1.89 | 2.86 |
GQG Partners LLC claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this performance information in compliance with the GIPS standards. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. GIPS composite reports may be obtained by emailing clientservices@gqg.com.
Performance data is based on the firm’s composite for the strategy. The composite was created in June 2016. Performance presented prior to June 1, 2016 was achieved prior to the creation of the firm. The prior track record has been reviewed by Ashland Partners & Company, LLP and conforms to the portability requirements of the GIPS standards. On June 28, 2017, ACA Performance Services, LLC acquired the investment performance service business of Ashland Partners & Company, LLP. For periods after June 1, 2016, the composites consist of accounts managed by GQG pursuant to the strategy.
The US dollar is the currency used to express performance. Returns are presented net of management fees and include the reinvestment of all income. Net performance is calculated after the deduction of actual trading expenses and other administrative fees (custody, legal, administration, audit and organization fees). Net returns are calculated using the highest/model rack rate fee. Net performance is net of foreign withholding taxes. PAST PERFORMANCE MAY NOT BE INDICATIVE OF FUTURE RESULTS. Please see the Appendix for additional disclosures regarding the composites. Returns for periods greater than one year are annualized.
BENCHMARK INFORMATION
MSCI benchmark returns have been obtained from MSCI, a non-affiliated third-party source. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing, or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.
The MSCI Emerging Markets (Net) Index captures large and mid cap representation across 24 Emerging Markets (EM) countries. With 1,375 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country. * EM countries include Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.