Axiom Investors Emerging Markets Equity White Paper
Axiom believes emerging market (EM) equities are currently attractive and, moreover, that underlying improvements in the investible universe have enhanced stock selection driven alpha opportunities. Axiom believes:
- EM outperformance will be reinvigorated by the reaccelerating growth differential between emerging and developed markets. Furthermore, EM inflation is now falling ahead of DM inflation.
- EM valuations are at historically attractive discounts.
- The secular tailwinds for EM growth are likely to reassert themselves.
- Structural improvements in the investible universe have enhanced stock selection opportunities.
- Compelling dynamic growth themes are increasingly available across multiple emerging markets.
- EM offers portfolio diversification with historically attractive lower return correlations.
- EM is an essential component of responsible investing both for impact as well as alpha generation.
- China remains an important market offering exposure to both near- and longer-term catalysts, especially uncorrelated returns, and strong stock selection opportunities.
- An active approach to EM remains preferable given the opportunity to invest across diverse markets including over 25 countries and 11 sectors.
Since inception of our dedicated EM strategies over 15 years ago, Axiom has delivered strong net-of-fee outperformance for our investors by remaining focused on our core competence: finding and investing in the best dynamically growing companies across the emerging market universe.
Click here to read our full thought leadership piece.
Disclaimer: This White Paper may contain forward-looking statements within the meaning of the U.S. federal securities laws. Actual results could and likely will differ, sometimes materially, from those projected or anticipated and investors should not rely on such forward-looking statements in making their investment decisions. We are not undertaking any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. You should not take any statements regarding past trends as a representation that trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements. The information contained herein represents neither an offer to sell nor a solicitation of an offer to buy any securities or investment service.