After nearly a decade in the wilderness for emerging markets, we must ask ourselves, is this a dawn of a new era? Is this the decade for emerging markets?
There is a feeling that we are in a period of change and return to normality, not only in respect of the global economy as a whole, but in relation to the internal drivers of individual markets. This being driven by higher interest rates, leading to more regionalisation and competition between developed and developing nations.
Given the higher cost of capital and I believe this is a time when active management is going to come to the fore.
At J O Hambro Capital Management (JOHCM), our emerging market fund managers have distinct approaches. In our discussion, we will explore some key topics, including the challenges regarding the cost of capital, geopolitical risks, and, more importantly, the opportunities for asset allocators in emerging markets.