Chapter 4. The patient investor’s approach to Emerging Markets

Why investors cannot afford to ignore Emerging Markets

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Perhaps more for Emerging Markets than for any other investment universe, investors must have a long-term, patient approach.

From thirty years of investing in Emerging Markets, our experience tells us that selectivity and patience are key to success in this universe. Our flagship fund Carmignac Emergents, launched in 1997, is the perfect illustration of this. Discover its 24-year journey through Emerging Markets:

From an investment point of view, the main incentive to invest in Emerging Markets is to capture the growth that comes from their on-going development. We seek to do so by focusing on long-term trends that shape the world of tomorrow – improving living standards, digitization, new consumption habits, and sustainable technologies, amongst others.

These trends lead to the emergence of new companies operating in developing sectors, but also place value on existing companies who diversify their activity; by launching innovative products or positioning themselves on new sectors. There are sectors that were under-developed but will now grow as time progresses. It is this growth that benefits certain companies, and these are the companies we aim to invest in.

But Rome wasn’t built in a day. These trends and the resulting transformations take time to unfold, they require a careful selection and an active approach to select the best opportunities: those with long-term growth potential, sound financials and solid extra-financial credentials.