Over the past two years, emerging markets (EMs) have enjoyed a strong return to outperformance, driven by the first synchronised global growth episode since before the global financial crisis.
With EM economic indicators accelerating rapidly - and faster than those in developed markets - this growth has driven a dramatic improvement in earnings prospects for corporates across the board. Vontobel's van Overfelt on the fundamentals driving EMD markets During the quantitative easing (QE) era, corporate profitability suffered dramatically as the low-growth backdrop caused top-line growth to stumble. We are now seeing a reversal of this trend as companies regain pricing power and margins expand again. Moreover, capex requirements are low thanks to overcapacity from the p...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
