Emerging Markets
Three important emerging market themes
Rising consumerism
Consumer is king in these vast domestic markets. In fact, consumption in EM cities is expected to generate about 56% of global consumption growth between 2015 and 20301
Increasing mobile growth
The number of unique mobile subscribers is expected to reach 5.9 billion (or 71% of the global population) by 2025, driven in large part by emerging markets2
Shifting infrastructure investment
Nearly two-thirds of global infrastructure investment though 2035 will be in emerging economies3
Presenting the Aberdeen Emerging Markets Fund
- A concentrated portfolio of high-conviction stocks with long-term value based on quality
- A combination of broad market coverage and deep company level insights of our EM Equity team
- An intense focus on company fundamentals, which can help drive performance over the long term
Funds in focus
In response to the Russia-Ukraine crisis and subsequent sanctions, we have taken the following action in relations to the Russian holdings in the abrdn Emerging Markets Equities Fund.
abrdn prices assets held within its funds pursuant to pricing policies applicable to those funds. abrdn continues to follow those pricing policies. abrdn monitors fair value estimates daily and has made fair value adjustments to reflect the changing market impacts since the start of the Russia/Ukraine crisis. As of March 3, 2022 NAV, given current market conditions and liquidity, abrdn’s Americas Pricing Committee has decided to reduce the price on Russian equity and Global Depositary Receipt (GDR) and American Depositary Receipt (ADR) instruments held to zero. This includes abrdn registered open-end and closed-end funds as well as private funds. Funds maintain their claim to these assets.
As of March 3, 2022 Russian holdings in the fund were as follows
Novatek
Lukoil
Sberbank
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Sources: 1 McKinsey Global Institute, March 2016. 2 Source: GSMA – The Mobile Economy 2018 3 McKinsey Global Institute, October 2017. Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially.
Over the past 15 years, emerging market (EM) equities have experienced strong performance. And through a combination of demographic advantages, local market trends and increased index diversification, they may be poised to continue performing well.
While much of the developed world contends with aging societies, emerging markets tend to be younger. Many are home to growing working-age populations, which bodes well for their labor pools and consumer spending. Additionally, increasing middle class wealth and the pace of urbanization in these areas should power global spending for years to come.
Corporate governance standards are also improving, which could bolster investor confidence.