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Pattern

Emerging market ex-China

Expanding EM opportunities beyond China and across the globe

Why consider EM ex-China

China’s influence

China could account for over 40% of the MSCI EM over the next 5 years, limiting other EM opportunities.

Arrows

Correlation

MSCI EM and MSCI EM ex-China have complementary returns that have been uncoupling since Covid-19.

Consumer Duty

Attractive demographics

EM ex-China has significant demand growth potential for infrastructure, health care, and premium goods and services.

Investable universe

Beneficiary of structural growth trends in underdeveloped capital markets.

What’s driving opportunity in EM ex-China?

Consumption

The modernization of consumption habits due to Covid, with more consumers turning to online shopping. This trend is set to continue in underpenetrated regions across categories like groceries and personal care.

Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.


Chart 1. More emerging market consumers are turning to online shopping

Technology

EM ex-China plays a fundamental role in the technology supply chain and contains many big names.


Chart 2. EM ex-China companies are becoming global leaders in technology

Commodities

Copper demand is set to grow steadily. This rising demand and copper’s supply shortage should benefit Latin America over the next two decades.

Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.


Chart 3. Copper demand set to grow steadily until 2040

Demographic demand

Expanding economies have a growing need for infrastructure, health care, and premium goods and services.

Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.


Chart 4. Growing size of consumers in emerging markets

Fund in focus - Mutual funds

abrdn Emerging Markets ex-China Fund

Class A

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Fund in focus - Closed-end funds

abrdn Emerging Markets ex-China Fund, Inc. (AEF)

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