Emerging market equities offer a world of opportunities

Emerging market equities offer a range of potential benefits for investors, including diversification away from US-dominated global benchmarks, relatively lower valuations compared with developed markets, and access to dynamic companies and economies.

Emerging and developing economies now account for around 45% of global GDP, up from 25% in 2000, and have contributed approximately 60% of global economic growth over that period, according to the World Bank¹. Much of this expansion has been driven by the three largest emerging markets: China, India and Brazil.

A “cheaper Nasdaq”?

While the emerging market growth story is well known, what is most exciting right now in our view is the opportunity to invest in companies directly benefiting from the twin AI and robotics investment booms.  One could almost view the emerging markets universe as a “cheaper Nasdaq,” offering exposure to companies such as Taiwan Semiconductor (semiconductor manufacturing), Samsung Electronics (memory chips) and SK Hynix (memory chips). These firms are key suppliers to the so-called AI “hyperscalers”, those (primarily US) companies operating massive cloud computing infrastructure at global scale. 

Information technology is the largest sector in the MSCI EM Index, and these three companies are among its largest constituents by market capitalisation. The others include Tencent and Alibaba, which provide exposure to China’s transition towards a more consumer-driven economy.

The MSCI EM Index currently trades on a forward price-to-earnings ratio of around 14.5x², compared with 18.3x for the MSCI World Index and 23x for the Nasdaq³ itself.

Higher risk, higher dispersion

Emerging market equities can carry higher risks than developed market equities, including greater volatility, currency fluctuations, political instability and regulatory change. Historical examples include financial crises in Southeast Asia (1997), Brazil (1999) and Argentina (2001–02).

While growth in emerging markets has been transformative over the past 25 years, the World Bank highlights challenges such as rising debt burdens, demographic shifts and the increasing costs of climate change.

Performance has also been cyclical. The chart below shows the emerging markets index performance relative to the developed markets index. Emerging market equities underperformed in the late 1990s before rallying through to 2010, followed again by a period of underperformance versus the exceptionally strong US market.  However, emerging markets have once again begun to outperform from this low base, marking the possible start of another strong relative performance cycle, in our view.

Emerging markets performance relative to developed markets 1996-2025

Source: Bloomberg, as at 31.3.26. Past performance does not predict future returns.

Source: Bloomberg, as at 31.3.26. Past performance does not predict future returns.

Our approach

We believe active investment management is essential in emerging markets, where dispersion of returns across companies is very high. A carefully constructed portfolio of emerging market stocks can offer diversification benefits and help manage volatility. The Jupiter Origin emerging market strategy typically holds 100-150 stocks.

Consistency of investment approach is absolutely key for us. We focus on identifying businesses that demonstrate:

• higher profitability and growth than the broader market
• the potential to sustain these advantages
•  attractive relative value
• positive earnings and share price momentum

As a result, our portfolios tend to exhibit a blend of growth, value and momentum characteristics relative to the benchmark.

The Jupiter Origin team’s investment approach is grounded in clarity, evidence and discipline. We avoid forecasts and subjective opinions, instead relying on objective data and collective judgment. We believe this helps reduce emotional bias and supports a repeatable, transparent investment process.

We are a small, experienced team with over 25 years of collaboration. This long-standing partnership fosters alignment, trust and efficient decision-making. We have applied this approach consistently since launching our emerging market equities strategy in 2011.

Footnotes

¹World Bank policy research paper, From Tailwinds to Headwinds: Emerging and Developing Economies in the Twenty-First Century, as at 7.10.2025.

²All MSCI index data is from MSCI Emerging Markets Index Factsheet, as at 31.3.2026

³Wall Street Journal/ Birinyi Associates as at 24.4.26

Strategy risks

• Currency (FX) Risk - The Strategy can be exposed to different currencies and movements in foreign exchange rates can cause the value of investments to fall as well as rise.
• Pricing risk - Price movements in financial assets mean the value of assets can fall as well as rise, with this risk typically amplified in more volatile market conditions.
• Emerging Markets Risk - Emerging markets are potentially associated with higher levels of political risk and lower levels of legal protection relative to developed markets. These attributes may negatively impact asset prices.
• Derivative risk - the Strategy may use derivatives solely for efficient portfolio management purposes to reduce costs and the overall risk of the Strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
• Counterparty Default Risk - The risk of losses due to the default of a counterparty on a derivatives contract or a custodian that is safeguarding the strategy's assets.
• ESG - Investments are selected or excluded on both financial and non-financial criteria. The Strategy's performance may differ from the broader market or other strategies that do not utilize ESG criteria when selecting investments.
• ESG Data - The Strategy uses data from third parties (which may include providers for research, reports, screenings, ratings and/or analysis such as index providers and consultants) and that information or data may be incomplete, inaccurate or inconsistent.
• Charges from capital - Some or all of the Strategy's charges are taken from capital. Should there not be sufficient capital growth in the Strategy this may cause capital erosion.
• Stock Connect Risk - Stock Connect is governed by regulations which are subject to change. Trading limitations and restrictions on foreign ownership may constrain the Strategy’s ability to pursue its investment strategy.

For a more detailed explanation of risks, please refer to the "Risk Factors" section of the prospectus.

Important Information

This is a marketing communication. This document is intended for investment professionals and is not for the use or benefit of other persons, including retail investors.
Please refer to the latest Prospectus and to the Key Investor Information Document (KIID) (for investors based in the UK) and Key Information Document (KID) (for investors based in the EU) before making any investment decision. Particularly to the sub-fund’s investment objective, characteristics including those related to ESG (if applicable), and additional risk factors.

This document is information only and is not investment advice. The value of investments and income may go down as well as up and investors may not get back amounts originally invested. Exchange rate changes may cause the value of investments to fall as well as rise.

An investment is designed to be held over a longer-term. Initial charges may have a significant impact on returns if the investment is withdrawn in the shorter term.

The views expressed are those of the author(s) at the time of preparation, are not necessarily those of Jupiter as a whole and may be subject to change.

This information is only directed at persons residing in jurisdictions where the fund/sub-fund is authorised for distribution or where no such authorisation is required. Not all share classes are authorised for distribution in all jurisdictions. Jupiter may terminate marketing arrangements.

The Company is an investment company with variable capital established as an umbrella fund with segregated liability between sub-funds which is authorised and regulated by the Central Bank of Ireland pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011, as amended. Registered in Ireland under registration number 271517. Registered office: 33 Sir John Rogerson’s Quay, Dublin 2, Ireland.

Every effort is made to ensure the accuracy of any information provided but no assurances or warranties are given.

Company examples are for illustrative purposes only and are not a recommendation to buy or sell.

Historical examples are for illustrative purposes only, may not represent current fund holdings, and are not a recommendation to buy or sell.

Issued by Jupiter Asset Management (Europe) Limited (the Manager), The Wilde-Suite G01, The Wilde, 53 Merrion Square South, Dublin 2, D02 PR63, Ireland which is registered in Ireland (company number: 536049) and authorised and regulated by the Central Bank of Ireland (number: C181816).

This document contains information based on the MSCI Indices. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.  No further distribution or dissemination of the MSCI data is permitted without MSCI’s express written consent.