Emerging markets have come a long way since Franklin Templeton launched the first fund of its kind over 30 years ago—but many investors have outdated perceptions. The implications are serious. Underestimating these countries means overlooking some of the fastest-growing economies in the world.
Templeton Emerging
Markets Fund
Franklin LibertyQT
Emerging Markets
Index ETF
Portfolio Manager Nicole Vettise reveals three new realities that are reshaping emerging markets.
What’s in store in the Year of the Ox—are our portfolio managers bullish, or will the year play out…
Manraj Sekhon highlights structural advantages in emerging markets.
In this issue of Trends Reinforced, Chetan Sehgal explains why the global pandemic and US-China…
When the first ten emerging market countries were bundled together 30 years ago, they produced commodities, low-cost manufacturing and…not much else. The guidebook was simple: produce locally and sell abroad. Countries with access to oil, precious metals and huge workforces thrived in the category’s early days – but their fortunes were tied to the developed world.
Things have changed. Today’s 24 emerging market countries offer so much more than energy and raw materials. And spending by the growing middle class is making emerging markets more independent.
Pop quiz: who applied for more patents in 2018 – China or the United States, Japan and Germany combined?
ANSWER >The emerging markets’ reliance on USD debt is one example of these improvements. When countries borrow in U.S. dollars, their debts become vulnerable to currency shifts. Any drop in the value of local currency vs. the greenback could prompt a crisis. Today’s emerging markets have diversified their sources of borrowing.
In a sea of overlooked and under-researched companies, there’s no substitute for local market knowledge.
Our on-the-ground investment team of more than 80 portfolio managers and analysts across 16 countries distinguishes Franklin Templeton Emerging Markets Equity from the crowd. Investors benefit from our networks of local business contacts, access to in-person company visits and real-time response to local market events.
Is it time for you to rethink emerging markets? Talk to your advisor about how these solutions can complement your portfolio.
As of February 29, 2020. Please refer to Excellence, Recognized for more information about Morningstar risk-adjusted ratings.