Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish

EMs: With great challenges come great opportunities

From health and wellness to climate change and more, the COVID-19 crisis has spawned or accelerated compelling investable themes across a range of EM countries. Against that backdrop, four of Wellington’s EM equity portfolio managers share their latest insights.

Views expressed are those of the authors and are subject to change. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.

The developing world was the epicenter of the COVID-19 outbreak earlier this year, so it is ironic in a sense that we now see emerging markets (EMs) as such a rich source of COVID-related investment opportunities. From health and wellness to climate change and more, the unprecedented global health crisis has spawned or accelerated compelling investable themes across a range of EM countries. Against that backdrop, four of Wellington’s EM equity portfolio managers share their latest insights.

Liliana Dearth on health and wellness in China

We are seeing individuals across developing countries being more proactive with regard to health and wellness. With greater availability of information, individuals are empowered to search for their own answers, compare various options, and pursue better overall health care. This trend is reshaping traditional approaches and fueling rising demand for higher-quality services. This was evident on our last grassroots research trip to China in late 2019, where we conducted focus groups, in-home interviews, and surveys with consumers to understand their needs and aspirations in this area. There was a resounding desire to seek improved access to health care testing and monitoring. The Chinese government is playing an active role in supporting this goal by reallocating resources across higher- and lower-tier hospitals. When we translate these insights into investment ideas, we have targeted companies involved in diagnostic testing, including medical equipment manufacturers and independent clinical laboratories, which we think should benefit from increased outsourcing by hospitals.

On a similar note, we’ve also seen a greater emphasis on premiumization among Chinese consumers, particularly concerning food staples and food safety. Prior to COVID-19, we had already seen consumers in lower-tier cities begin to move away from…

To read more, please click the download link below.

Recommended for you

Chinese government bonds: How do they measure up in a multi-asset framework?
As China's bond market continues to grow in size and liquidity, we consider the potential role the country's government bonds can play in diversifying a broader sovereign portfolio, improving yields, and offsetting equity risk.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
August 2021
Chinese government bonds: How do they measure up in a multi-asset framework?
,
publish
Investing implications of a three-speed economy
Multi-Asset Strategist and Portfolio Manager Nick Samouilhan and Investment Directors Andrew Sharp-Paul and Matthew Bullock highlight how key regional differences globally have led to three distinct ”blocks” of the world economy.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
July 2021
Investing implications of a three-speed economy
,
publish
Split decision: Should investors  separate China from EM equities?
Many investors are contemplating whether to separate China from the rest of their emerging market equity allocation. Members of our Investment Strategy Group argue that the key decision point is not China’s dominance of the emerging market index, but the extent to which a standalone China allocation can be viewed as similar to an EM ex-China allocation. In this paper, they evaluate the similarity of the two allocations using a variety of metrics, from correlations to factors to sector composition.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
July 2021
Split decision: Should investors separate China from EM equities?
,
publish
Nick Samouilhan
 PhD, CFA, FRM
Africa rising: The hopeful continent
Equity Portfolio Manager Bo Meunier and Equity Research Analyst David Reid believe the time has come for equity investors to take a closer look at the opportunity set in Africa.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
July 2021
Africa rising: The hopeful continent
,
publish
EM inflation has arrived, but will it stick around?
Emerging markets inflation has been top of mind for many investors lately. Macro Strategist Gillian Edgeworth, Equity Portfolio Manager Jamie Rice, and Fixed Income Portfolio Manager Michael Henry consider the outlook going forward and potential market implications.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
July 2021
EM inflation has arrived, but will it stick around?
,
publish
China unplugged: Investing in the world’s largest decarbonization effort
China has pledged to target peak emissions by 2030 and net-zero emissions by 2060. This massive environmental initiative could affect almost every production, consumption, and investment decision for the next several decades. We provide a high-level look at how China will approach the path to net zero and what investors should be watching.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
June 2021
China unplugged: Investing in the world’s largest decarbonization effort
,
publish
<p style="font-size: 13px; margin:7px 0;">FUTURE THEMES | SYSTEMS</p>The “EM-ification” of DMs
Global Investment Strategist Nanette Abuhoff Jacobson believes that many developed market countries are beginning to resemble their emerging market counterparts in certain ways. Here are some of her findings, along with possible paths forward and potential investment implications.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
May 2021

FUTURE THEMES | SYSTEMS

The “EM-ification” of DMs
,
publish
An allocator’s agenda for a reflating world
Multi-Asset Strategist Nick Samouilhan and Investment Directors Andrew Sharp-Paul and Matthew Bullock focus on some suggested ”to-do” items for asset allocators in response to the potentially reflationary impact of the COVID-19 vaccines and fiscal policy stimulus.
Archived insights remain available on the site. Please consider the publish date while reading these older insights.
publish
April 2021
An allocator’s agenda for a reflating world
,
publish