Emerging markets ex China - is this the future?

Separate allocation

We have done a lot of research on Chinese markets in recent years and our clients have had a great deal of success investing there, even with the recent volatility, macro, regulatory and Covid-19 concerns.

However, one question that is becoming increasingly common is: 'Should we carve out China as a separate allocation from emerging markets?' How popular is this approach? The idea of emerging markets ex China is far from being mainstream. Although conversations are increasing, it is still early days for product launches and significant allocations. In the eVestment database, only 16 active equity strategies describe themselves as emerging markets ex China; this compares to 600+ broader emerging market strategies. With total assets across these 16 strategies of just $845m and a medi...