Emerging markets
Ground floor investment opportunities
Why invest in emerging markets?
The youngest developing markets of the world may be high risk, but they are often sought after because they can offer growth rates that are unattainable in more mature markets.
Embracing South America, Eastern Europe, parts of Asia, Africa and the Middle East, investments in emerging markets can give you exposure to sectors not widely covered elsewhere. This includes oil, natural gas and mining.
Another factor is that many emerging economies have undertaken painful restructuring since the Asian economic crisis of the late 1990s.
As a result, many of these markets are now far less vulnerable to chronic budget deficits and inflexible economic policies than they used to be.
Key issues to consider with emerging markets
- They can experience much higher rates of growth than mature, developed markets.
- These markets are the main beneficiaries of the strength in commodity markets, such as oil and base and precious metals.
- They can offer low correlation with developed markets, making them a good means of diversifying risk.
- Investments in emerging markets may involve a higher element of risk due to political and economic instability and underdeveloped markets and systems.
Why J.P. Morgan in emerging markets?
- Our Emerging Markets Equity Team gathers together more than 40 investment professionals based in local markets throughout the world.
- We have a highly disciplined process to pinpoint high quality companies trading at attractive valuations.
- Our local expertise and the size of our investment team allows us to offer not only global emerging markets funds, but also regional and single market portfolios focusing on emerging Europe, Latin America, the Middle East and Russia.