ISAPF - Smaller Stocks Open Broader Windows To Emerging Markets
By Sergey Davalchenko
Equity investors in emerging markets ((EM)) typically focus on large-cap companies. But allocating to smaller companies can help broaden an EM allocation by providing a different mix of exposures to opportunities across countries and sectors - and can bring potential for higher added value.
Investors in EM equities are facing a rapidly changing market landscape. Some countries are coping with the impact of COVID-19 better than others. Companies are reconfiguring supply chains amid the pandemic and deglobalization trends. And efforts to upgrade economies are providing new growth prospects for many businesses. These