Emerging market stocks have fallen far behind their global developed counterparts in the past few years.
But growth investor Baillie Gifford believes the asset class remains appealing as rising innovations, attractively priced stocks, and favorable macroeconomic conditions bubble up in less developed economies.
“Quite frankly, emerging markets has disappointed everybody over the last decade,” Andrew Keiller, emerging market specialist at Baillie Gifford, told II in an interview. “The key question is, why will the next decade be any better?” The answer, at least in part, is that there are “genuinely great growth companies” in emerging markets that have expanded beyond China and East Asia, according to the manager.
Fidelity Emerging Markets Limited (LON:FEML) is an investment trust that aims to achieve long-term capital growth from an actively managed portfolio made up primarily of securities and financial instruments providing exposure to emerging markets companies, both listed and unlisted.