Emerging Markets Equity
Demographics, technological advancement, and, most notably, the aspirations of a rising middle class have transformed the emerging markets over the last several years, creating new opportunities.
The VanEck Approach
Investing in emerging markets is at the core of VanEck’s founding. In 1955, the firm’s initial offering was a fund that sought to provide access to post-WWII Europe. Continuing this philosophy of providing access to growth, our current emerging markets strategy, launched in 1993, is aligned with the future of emerging markets.
- The investment approach is driven by stock selection conducted through rigorous due diligence with a focus on management interaction and quality, governance and business models with visibility, innovation and low disruption risk.
- The portfolio, which comprises companies with visible and persistent growth, provides access to opportunities that are often poorly captured by many active emerging markets strategies, as well as widely used market indices.
- Since its inception, the Strategy has been guided by Portfolio Manager David Semple, who has 30 years’ experience living and investing in emerging markets.
- In today’s market environment, characterized by uncertainty amid the global pandemic, emerging market economies may benefit significantly from their younger population and possible prior exposure to certain diseases and vaccinations.
- Historically, small and mid-cap companies underperform in periods of stress, yet these conditions tend to expose significant and exciting investments of higher growth and idiosyncratic opportunities, leading to renewed emphasis on stock picking.
- As the epicenter of the outbreak, China quite quickly took steps to contain its spread. There are clear, tangible signs of recovery that may act as a blueprint for the rest of the globe. The Strategy continues to have a higher percentage of investments in China than its benchmark, and stock selection has been a positive contributor over the short-term.
We believe that companies driven by domestic demand and local consumer trends represent the future of emerging markets and global economic growth. By using an active, disciplined, bottom-up process, the VanEck Emerging Markets Strategy has the flexibility to invest across market capitalizations, sectors, and regions.
Our forward-looking, disciplined strategy focuses on exceptional companies that exhibit visible and persistent growth trends in emerging market countries.