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Investing in emerging-market equities

April 2010

Since stock markets around the world reached their trough levels in March 2009, emerging-market equities have recovered particularly strongly. In U.S. dollar terms, emerging markets, in aggregate, returned +108.1% over the 12 months to March 3rd (the anniversary of their 2009 low), while the world index as a whole delivered a return of 'just' +68.8% to the U.S.-based investor.

In this article we look at the case for investment in emerging markets and the means by which investors might gain exposure to the favorable trends in those markets.

The strong performance of emerging-market equities over the last 12 months means that those equities are not as attractively valued collectively as they had been previously.

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