Emerging Markets   |   Jun 8, 2023

Evolving Country Concentration in Emerging Market Indices

In this Insight we address the changes and concentration of the MSCI Emerging Market Index over the last decade and the implication for investors of the growing size of China within these Indices. The last 10 years have seen some significant changes to the emerging market investment landscape, both in terms of the shifting geographical bias and the types of investors that make up the shareholder bases of many emerging market companies. 

Dominic Bokor-Ingram
Senior Portfolio Manager, Emerging and Frontier Markets

 Key Takeaways 

  • Structural changes in the EM universe and indices present new and important considerations for global investors 

  • EM Countries share of world economic growth steadily increasing relative to total world GDP 

  • North Asia Equity allocations expanding and investment in Chinese Equities increasingly carved out of broader EM strategies 

  • “Smaller” Emerging Market countries present a compelling “alpha” opportunity for active investment management