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