Emerging Market Equities Strategies and Funds

Emerging market equities offer a unique opportunity for investors to tap into the growth potential of rapidly developing economies. These markets have historically outperformed developed markets over the long term.

Investors can access emerging market equities through various strategies and funds. One popular approach is to focus on specific countries or regions, such as the BRIC nations (Brazil, Russia, India, and China).

Our approach to emerging market equities is built on a disciplined investment process that helps us harness inefficiencies in the market. This process focuses on attractively valued companies with an underappreciated earnings outlook by the market.

We use a quantitative model to identify companies that are undervalued due to behavioral biases of market participants, such as overconfidence and herd behavior. Our models are designed to benefit from market inefficiencies in emerging countries, where retail investors and short-term market noise often drive the market.

Sustainability is integrated into our investment process, with a focus on environmental, social, and governance (ESG) analysis. This helps us identify non-financial risks and potential opportunities, allowing us to make better-informed investment decisions.

We take a long-term view when investing in emerging market equities, seeking to build portfolios with high active shares. Our investment process considers ESG risk factors to enhance long-term value.

Our global emerging market equities strategies aim to capture the attractive growth potential of the broader emerging market equity asset class.

These funds offer access to higher growth potential, which is a significant advantage over other investment options.

Exposure to emerging markets provides increased diversification, leading to a more balanced risk/return profile.

You can use emerging market funds to diversify internationally and seek long-term growth, making them a great addition to a well-rounded investment portfolio.

With exposure to 800+ emerging market stocks, these funds give you easy access to a wide range of investment opportunities.

The Aviva Global Core Fund is designed to provide long-term capital growth potential.

This fund achieves its goal through core exposure to emerging markets, which can be a great way to diversify your investment portfolio.

By investing in emerging markets, you're giving your money the opportunity to grow over time, potentially leading to higher returns.

Global corroboration is a key part of the investment approach used by Aviva Investors, which means they consider multiple perspectives and viewpoints when making investment decisions.

This approach can help reduce risk and increase the chances of long-term success.

The Aviva Investors Global Unconstrained Fund is designed to deliver consistent long-term returns through a focused portfolio of top picks.

This fund is led by a team of experienced investors who work together to identify the best investment opportunities. They don't follow a specific style or approach, instead, they focus on finding the most promising ideas.

Their goal is to create a high-conviction portfolio that can generate consistent returns over the long term. By doing so, they aim to provide investors with a reliable and stable source of returns.

Investors can expect a team-driven approach that's focused on delivering the best possible outcomes.

If you're looking to diversify your investments and tap into the growth potential of emerging markets, you have several options to consider. One of these options is investing in regional portfolios that focus on specific markets such as China, India, or Africa.

We manage regional portfolios that invest in Chinese, Indian, or African equities. This allows you to gain exposure to these specific markets and potentially benefit from their growth potential.

Here are some examples of regional portfolios we offer:

Investing in emerging market equities requires a solid understanding of the risks involved, including currency fluctuations and political instability, which can significantly impact returns.

Emerging markets often have less developed infrastructure and regulatory frameworks, making it essential to conduct thorough research and due diligence before investing.

Consider the long-term growth potential of emerging markets, which can offer higher returns than developed markets, but also come with higher volatility.

The MinRisk strategy is a quantitative investment approach that aims to outperform the market return over the long term while reducing risks. This strategy is oriented towards the benchmark MSCI Emerging Markets.

The investment universe for the MinRisk strategy comprises more than 4500 equities. This large universe provides a solid foundation for making informed investment decisions.

The MinRisk strategy invests defensively, which means it prioritizes risk reduction over potential gains. This approach is designed to help investors navigate emerging markets with more confidence.

By focusing on defensive investments, the MinRisk strategy can help investors mitigate potential losses and preserve their capital. This is especially important in emerging markets, where risks can be higher.

The MinRisk strategy is available in different currencies, including EUR and USD. This flexibility allows investors to choose the currency that best suits their needs.

Here are some specific MinRisk funds that you can consider:

Valuation is a crucial aspect of investment decisions. They look to buy companies trading below their estimate of fair value.

Investors should consider the estimated fair value of a company before making a purchase. This helps ensure they're getting a good deal.

A company's fair value is determined by various factors, including its financial performance and market conditions.

The Indian election was narrowly won by Narendra Modi's Bharatiya Janata Party (BJP), which has significant implications for investors.

Narendra Modi's BJP won the election, and this could impact the Indian equities market.

Investors should consider the potential investment implications of the BJP's victory, which could be far-reaching.

The BJP's win may lead to a shift in economic policies, which could influence the Indian equities market.

Investors should stay informed about the BJP's policies and how they may affect the market.

The Indian equities market may experience volatility in the short term as investors adjust to the new government.

The BJP's policies could have a lasting impact on the Indian economy and equities market.

Investing like a contrarian can be a smart move. By identifying unloved areas of the market, you can find investment opportunities that others may be overlooking.

Investment opportunities can be found in unloved areas, as we've already seen.

Being a contrarian requires a willingness to think differently and challenge popular opinions. This mindset can help you spot potential winners that others may be ignoring.

Investing in unloved areas can be a contrarian approach, but it requires careful research and analysis to ensure you're making informed decisions.

Emerging market equities offer higher growth potential compared to other markets. This is due to the superior growth potential of emerging market economies.

Inefficiencies within emerging markets provide significant opportunities for active stock pickers. This is a result of the asset class's broader nature, allowing for more room to maneuver.

Exposure to emerging markets offers increased diversification, leading to a more balanced risk/return profile.

One of the most attractive benefits of investing in funds is the potential for higher growth. Emerging markets have shown superior growth potential compared to developed markets.

Inefficiencies within emerging markets provide significant opportunities for active stock pickers to make informed investment decisions. This can lead to better returns for investors.

Exposure to emerging markets offers increased diversification, which can lead to a more balanced risk/return profile.

When you're using a new system, you want to know it can keep up with your needs. The benefits of a high-performance system are clear: it can handle heavy workloads and multiple tasks at once.

A good example is a system that can process 10,000 transactions in under 5 seconds, which is a huge improvement over older systems that might take up to 10 minutes to process the same amount.

The faster processing speed also means you can get results faster, which is a huge time-saver. Imagine being able to get answers to your questions in seconds rather than minutes.

The system's ability to handle multiple tasks at once also means you can do more with less effort. For instance, it can process multiple transactions simultaneously, reducing the overall time it takes to complete a task.

This increased efficiency is a major benefit of a high-performance system, allowing you to get more done in less time.

Asian equity markets have struggled in 2021, but with conditions starting to normalize, we find reasons to be optimistic.

Asian and EM equity markets have been facing challenges, but there are opportunities to be seized.

Conditions are beginning to normalise, allowing us to find reasons to be optimistic about the Asian equity markets.

We should be optimistic about the Asian equity markets as conditions are improving.

Asian equity markets have struggled, but with normalisation, we can expect better prospects.

Our disciplined investment process allows us to harness the inefficiencies resulting from market biases in emerging markets.

We focus on attractively valued companies with an underappreciated earnings outlook by the market. Our fundamental stock selection analysis helps us identify these hidden gems.

The market often overpays for perceived high quality growth, which creates an opportunity for us to exploit this behavioral bias.

In emerging countries, markets are driven by retail investors and short-term market noise, but our long-term investment view helps us uncover structural drivers.

Sustainability is integrated into our investment process, including ESG analysis to identify non-financial risks and potential opportunities.

We take a long-term, fundamentally driven approach to building portfolios with high active shares, considering environmental, social, and governance (ESG) risk factors.

Our investment manager always applies the Firm’s Baseline Exclusions Policy and any specific constraints within a prospectus or IMA, but other ESG factors or risk considerations are adopted at the manager’s discretion.

Sustainability is a key aspect of emerging market equities, with many funds incorporating environmental, social, and governance (ESG) factors into their investment processes.

These funds often apply exclusion policies and engage with companies on specific themes like climate change to improve their sustainability profiles.

Emerging markets can be volatile and carry higher risk than developed markets due to factors like market liquidity and regulatory constraints.

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates.

Emerging markets risk is a significant concern, with funds investing in these markets potentially facing difficulties in dealing, settlement, and custody problems.

Key risks associated with emerging market equities include:

Sustainability and risk can be a complex and nuanced topic, but let's break it down into some key points.

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. This means that investors may not get back the original amount invested.

Emerging markets can be particularly volatile, carrying higher risks than developed markets. This is because emerging markets are often less stable and can be more sensitive to economic changes.

Derivatives can be complex and highly volatile, which means they may not perform as expected. This can result in significant losses for the fund.

Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. This means that bonds that offer a higher income typically have a greater risk of default.

Certain assets held in the funds could be hard to value or sell at a desired time or at a price considered to be fair. This can result in very volatile prices.

Here are some key risks associated with sustainability:

Investors should be prepared to accept significant fluctuations in the value of funds invested in less developed countries. This includes countries such as China, where regulatory constraints can affect the liquidity and/or investment performance of the funds.

Sustainability is a key component of a long-term portfolio.

The strategy integrates ESG factors into its investment process by analyzing the impact of financially material ESG factors on a company's competitive position and value drivers.

This approach enhances the ability to understand long-term risks and opportunities of a company, which can impact a stock's fair value and portfolio allocation decision.

An exclusion policy is applied, and benefits are derived from voting and engagement activities focused on specific themes such as climate change, aiming to improve a company's sustainability profile.

From a macroeconomic perspective, the economic, political, and social strengths of emerging market countries are evaluated, including issues such as transparency, political stability, and protection of shareholder rights.

Analysis of ESG factors can lead to a country risk premium in the valuation analysis of individual stocks, which is a crucial consideration for long-term investors.