{"id":3264,"date":"2025-05-21T05:14:25","date_gmt":"2025-05-21T05:14:25","guid":{"rendered":"https:\/\/tat.capital\/?p=3264"},"modified":"2025-07-15T02:03:03","modified_gmt":"2025-07-15T02:03:03","slug":"the-need-for-active-managers-for-emerging-market-equity","status":"publish","type":"post","link":"https:\/\/tat.capital\/?p=3264","title":{"rendered":"The need for active managers for Emerging Market equity"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3264\" class=\"elementor elementor-3264\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4a6ccc9 e-flex e-con-boxed e-con e-parent\" data-id=\"4a6ccc9\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-8edf968 elementor-widget elementor-widget-heading\" data-id=\"8edf968\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">The need for active managers for Emerging Market equity<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-161db71 hfe-post-info-layout-inline elementor-widget elementor-widget-post-info-widget\" data-id=\"161db71\" data-element_type=\"widget\" data-widget_type=\"post-info-widget.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul class=\"hfe-post-info-inline hfe-post-info-items hfe-post-info\">\n\t\t\t\t\t<li class=\"hfe-post-info-item elementor-repeater-item-e26e168 hfe-post-info-inline-item\" itemprop=\"datePublished\"> \n\t\t\t\t\t\t\t<a href=\"https:\/\/tat.capital\/?m=20250521\">\n\t\t\t\n\t\t\t\t\t<span class=\"hfe-post-info-text hfe-post-info__item hfe-post-info__item--type-date\">\n\t\t\t\n\t\t\t\t\t\t\tMay 21, 2025\t\t\t\t\t<\/span>\n\t\t\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/li>\n\t\t\t\t<li class=\"hfe-post-info-item elementor-repeater-item-0de71a7 hfe-post-info-inline-item\"> \n\t\t\t\n\t\t\t\t\t<span class=\"hfe-post-info-text hfe-post-info__item hfe-post-info__item--type-time\">\n\t\t\t\n\t\t\t\t\t\t\t5:14 am\t\t\t\t\t<\/span>\n\t\t\n\t\t\t\t\t<\/li>\n\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f967f0f elementor-widget elementor-widget-text-editor\" data-id=\"f967f0f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"margin-bottom: 15px; color: #888888; font-size: 16px; font-style: normal; font-weight: 400;\"><span style=\"margin: 0px; padding: 0px;\"><u style=\"margin: 0px; padding: 0px;\"><span style=\"margin: 0px; padding: 0px;\"><span style=\"margin: 0px; padding: 0px; font-weight: 600;\">Key insights<\/span><\/span><\/u><\/span><\/p><ul style=\"margin-bottom: 0px; margin-left: 0px; padding-block: 5px 0px; padding-inline: 20px 0px; color: #888888; font-size: 16px; font-style: normal; font-weight: 400; text-align: center;\"><li style=\"padding-block: 5px; padding-inline: 0px; list-style: inherit; text-align: left;\"><span style=\"margin: 0px; padding: 0px;\">Global emerging markets have provided very strong returns for long term investors.<\/span><\/li><li style=\"padding-block: 5px; padding-inline: 0px; list-style: inherit; text-align: left;\"><span style=\"margin: 0px; padding: 0px;\">However, investors must be prepared to accept higher volatility over shorter periods of 3 years and less.<\/span><\/li><li style=\"padding-block: 5px; padding-inline: 0px; list-style: inherit; text-align: left;\"><span style=\"margin: 0px; padding: 0px;\">Significant performance dispersions across regions, countries, sectors and styles factors provide substantial opportunities for active managers.<\/span><\/li><li style=\"padding-block: 5px; padding-inline: 0px; list-style: inherit; text-align: left;\"><span style=\"margin: 0px; padding: 0px;\">Smart-beta or factor strategies have delivered mixed results \u2013 while Minimum Volatility and Sustainability factor indices have delivered strong results, traditional factor indices such as Value and Growth have disappointed.\u00a0<\/span><\/li><li style=\"padding-block: 5px; padding-inline: 0px; list-style: inherit; text-align: left;\"><span style=\"margin: 0px; padding: 0px;\">The level volatility and dispersion of risk factor across major countries continue to rise, reflecting greater geopolitical risks and country level policy risks.<\/span><\/li><\/ul><p style=\"margin-bottom: 15px; color: #888888; font-size: 16px; font-style: normal; font-weight: 400;\"><span style=\"margin: 0px; padding: 0px;\"><span style=\"margin: 0px; padding: 0px; font-weight: 600;\">Emerging Market equities can be a source of strong returns over the long term.<\/span><\/span><\/p><p style=\"margin-bottom: 15px; color: #888888; font-size: 16px; font-style: normal; font-weight: 400;\">Over the long term, emerging markets (EM) can be an attractive source of uncorrelated returns for investors. The total return chart (Exhibit 1) since 2005 shows EM equity has outperformed DM, World and Frontier markets by a notable margin. Investments in EM (unhedged) grew at an annual compound rate of 8.44% in comparison to a Developed Market (DM) average of 7.31% per annum, since 2005.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8fdfbf0 elementor-widget elementor-widget-button\" data-id=\"8fdfbf0\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.livewiremarkets.com\/wires\/why-investors-should-use-active-managers-for-emerging-market-equity\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Read More<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>The need for active managers for Emerging Market equity May 21, 2025 5:14 am Key insights Global emerging markets have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3830,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_canvas","format":"standard","meta":{"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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