Emerging Markets (EMs) are delivering standout value and returns. With 17.0% net gains to end July, EMs have outperformed Developed Markets (DMs), which lagged at 13.1%. Yet, despite this outperformance, EMs remain deeply undervalued: at 14x forward price-to-earnings, they are 30% cheaper than DMs and a striking 42% cheaper than the US. Add in the low price-to-book ratios and higher dividend yields versus the US, and the case for EMs becomes more compelling.

Read Eastspring’s Deep Dive into Emerging Markets

Steven Gray

Steven Gray is the Head of Global Emerging Markets (GEM) and Regional Asia Value Equities at Eastspring Investments, responsible for the firm’s GEM and Asia Value equity capabilities. He is also Lead Manager for the GEM Dynamic strategy.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.