1. Investment expertise
  2. Emerging Market Equities
Menu
Investment expertise

Emerging Market Equities

Emerging Market Equities

Emerging market (EM) equities offer a broad range of investments in different countries, types of companies and currencies. Emerging Market currencies benefited the most from the US dollar’s weakness in Q3 2017 and remained relatively undervalued in Q1 2018.


Emerging Market equities’ forward earnings multiples are still trading at a significant discount to those of developed markets (DMs) and their fundamentals have continued to improve in relative terms.

Though the political risk differential between Emerging Markets and Developed Markets has been narrowing as DM political risk has increased, it should remain stable in 2018.

What to know

  • Emerging Market value stocks are still trading near record-low valuations (1999–2000, 2008) and the potential payoff can be significant.
  • We believe that Emerging Markets will continue to offer better growth potential due to their demographic advantage and the convergence of their economies with Developed Markets.
  • On forward earnings multiples, Emerging Market equities are still at a discount to Developed Market equities.
  • Value companies have generally underperformed over the last few years. The rebound seen last December was very short-lived and momentum is still the main driving factor, as quality has not yet picked up despite significantly higher volatility.
  • We focus on companies trading at low or reasonable valuations adjusted for their quality, region and sector.

Investment philosophy & process

Our Global Emerging Equity strategy is built on an active discretionary country allocation, a conscious approach to factor exposure focused on value and quality, and a thorough bottom-up risk assessment of all portfolio holdings.

It aims to generate improved returns relative to the MSCI Emerging Markets index over the long term by offering better country diversification and a stock selection process that combines the benefits of quantitative and fundamental research techniques.

EM-Equities-charts-v2-ok.jpg


Investment Manager

Mathieu Nègre

Head of Emerging Equities and lead manager of the Global Emerging Equities strategy. He has been covering emerging equities since 2001. He holds a postgraduate degree in statistics from ENSAE in France and has been a CFA charterholder since 2006.


Read more

Institutional clients

With a team of more than 200 people, UBP Asset Management has built an on-the-ground presence in the world’s major markets through organic growth and selected partnerships.

Our fund range

Funds

View all our funds.