The recent increase of inflows to passive emerging market funds seems to fly in the face of those who see these markets a hugely inefficient, suggesting an active approach is perhaps a more sensible one.
Don Smith, emerging market equities CIO at BNP Paribas Investment Partners, looks to maximise returns not only by taking an active approach but also by exploiting those inefficiencies further down the cap scale.
Here, he explains why less well-known, less researched smaller companies are better placed to benefit from market inefficiencies and are also more directly exposed to the longer-term trends of being domestic focussed and consumer oriented.
