The true potential in emerging market economies occurs when a population moves from low income to the early-stages of middle class. It’s why LGM Investments, BMO’s emerging market equity team, puts such an emphasis (and overweight) on the industries that benefit from the increasing spending power of a consumer base.
This “emerging consumer” theme has played out over the last decade, as Consumer Staples have proven to be a major performance contributor in emerging markets by outpacing the broader index.
Emerging markets equities
Everyday essentials, or emerging consumer?
In developing economies, rising incomes and increasing levels of consumer spending fuel long-term growth potential.
BRIC & mortar: Building long-term outcomes with emerging markets (Podcast)
For many, emerging and frontier markets are nothing more than a misunderstood high risk, high reward slice of a well-diversified portfolio. This episode will provide an overview of the opportunities in this asset class, why investors may be looking to these markets for growth, and how to navigate the risks.
This material does not constitute investment advice and is not intended as an endorsement of any specific investment. Foreign investing involves special risks due to factors such as increased volatility, currency fluctuation and political uncertainties. Investing in emerging markets can be riskier than investing in well established foreign markets.
The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries*. With 1,137 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
The MSCI Emerging Markets Consumer Staples Index captures large and mid cap representation across 24 Emerging Markets (EM) countries*. All securities in the index are classified in the Consumer Staples sector as per the Global Industry Classification Standard.
*EM countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
Investments cannot be made in an index.