Why invest in emerging markets (EM)?
In an environment of ongoing volatility, we believe some of the most compelling and undervalued investment opportunities reside within emerging markets.
Undervalued opportunities
Emerging markets can be undervalued compared developed markets, leading to alpha generating opportunities.
Growth potential
In coming years, emerging markets countries are expected to account for 70% of global GDP growth. 1
Global diversification
Emerging markets are home to over 80% of the world’s population across more than 80 countries.
1 RBC GAM, IMF World Economic Outlook, Macrobond, October 2024. Based on IMF forecasts from 2024-2029.
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How can EM balance your portfolio?
The heads of our EM fixed income and equity desks discuss why they believe EM is important in forming a balanced portfolio.
"Clients would benefit from having a fixed income solution within emerging markets as part of their broader diversified portfolio."
"If we look at emerging markets as a percentage of global GDP, that figure is now well over 50% and emerging markets have really been driving global growth in recent years."
Hosted by Pensions & Investments
Featuring Anthony Kettle, BlueBay Senior Portfolio Manager
Wednesday, June 18 | 2:00 - 3:00PM ET
While fixed income investors continue to assess the implications of shifting U.S. trade policy and fiscal policy concerns, the asset class is providing a solid ballast for institutional portfolios. Given somewhat higher expectations for a global growth slowdown, fixed income is positioned to deliver both the income and diversification that investors seek. In today’s market environment, how are fixed income managers assessing duration risk and credit risk in the U.S. and international markets? With the end of U.S. exceptionalism, which countries are presenting monetary and fiscal policy that’s supportive of credit — and where are the opportunities? What are the range of approaches — from active management to customized indexing and benchmarking — that can help investors refine their asset exposures and meet specific portfolio targets?
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Emerging market debt can offer higher secular growth rates, enhanced yield, and diversification benefits relative to developed markets.
Why partner with RBC Global Asset Management?
We have been investing in EM for more than three decades. Our stable and highly experienced EM equity and fixed income teams bring considerable market knowledge, which we believe enhances our ability to effectively source alpha opportunities and mitigates the impact of performance headwinds for US clients.
Learn more about our Emerging Markets strategies