The Emerging Market Resurgence: Access, Risk and Reward

Emerging markets offer a continued source of alpha as they have outperformed the developed markets through and following the credit crisis. Unfortunately however, gaining access to the returns many of these markets offer is often complex and costly. Economic growth does not necessarily equate to a robust and accessible financial market, and so without the use of access products and local expertise investing in such countries remains prohibitively expensive.

Further, not all emerging markets are created equally. This is why country groupings such as BRIC(S) and CIVETS are falling out of favor; the economies of the component countries are traveling a similar path but the financial markets of each exhibit very different traits.

Based on conversations with global prime brokers, asset managers, hedge funds and exchanges in the US, Europe, Latin America, Asia and the Middle East, this study examines the macro-economic and capital market trends in the emerging markets. To understand how individual emerging markets differ, the study takes a deep dive into the dynamics of China, India, Brazil and the Middle East.