Portfolio Managers Daniel Graña and Matt Culley discuss how traditional outsourcing and convergence opportunities in emerging markets are being complemented by innovation opportunities as EM companies adopt a leading role in digitalization, decarbonization and other major global innovation themes.

Key Takeaways

  • Traditionally, investors have been drawn to emerging markets for outsourcing and convergence opportunities.
  • Today, EM companies are playing a leading role in a third major investment theme: innovation.
  • In our view, this innovation is occurring more rapidly and evolving along different lines than it has in the past, reshaping how emerging markets fit into the global innovation landscape.