PA Video Insight: Emerging markets redefined as an ever-expanding universe

Economics and politics are key drivers to emerging market company performance but investors do not invest in economics or politics so where are the big market and company opportunities right now?

For investors, emerging markets have a number of different definitions by asset class, geography, sector and source of company earnings.

Steven Smith explains why Capital Group has expanded its investment universe to include developed market companies that generate “meaningful” revenues from emerging and frontier markets – a global approach to GEM investing without the structural inefficiencies of index investing which right now, he says, is simply a quasi-Asia play with an overweight to China.

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