Actively invested in emerging markets and Asia

Actively invested in 
emerging markets

Solutions across the spectrum

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A range of long-term tailwinds support emerging markets (EMs). They include a demographic advantage over the West, manufacturing capabilities, resource advantages, digitisation and a focus on developing infrastructure.

With our broad EM offering, covering emerging and frontier markets, large and small caps, fixed income and Asia specialisation, Federated Hermes has the experience, the know-how and the connections to meet an array of investor requirements and help them capitalise on this vast and growing trend.

Emerging markets: Why now?

EMs account for 82% of the world’s population but currently only 26% of global market capitalisation.

World population:

World growth:

World economy:

World cap:

Source: Bloomberg as at November 2022


Four key attributes of emerging markets

The growth story:

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The commodities story:

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The inflation question:

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A demographic advantage
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Schwellenländer haben tendenziell jüngere Bevölkerungen mit einem hohen Prozentsatz von Menschen im arbeitsfähigen Alter und einem geringeren Prozentsatz von nicht erwerbstätigen älteren Personen. Dies kann in höheren Pro-Kopf-Einkommen resultieren.

Demografische Veränderungen begünstigen Schwellenländer

Quelle: Projektionen von World Data Lab.
An expanding middle class
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Income growth, urbanisation and demographic changes create a growing pool of middle-class consumers. This drives increased revenue for companies through premiumisation.

A powerful growth engine
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Laut Prognosen werden die Schwellenländer in den kommenden Jahren ein durchgängig höheres Wirtschaftswachstum erzielen als die Industrieländer. Voraussichtlich werden im Jahr 2030 die asiatischen Länder China, Indien und Japan das weltweit größte, drittgrößte und viertgrößte BIP aufweisen.

Ebenfalls 2030 wird die Gruppe der 15 Staaten mit dem größten BIP etwa zur Hälfte aus asiatischen Ländern bestehen

BIP-Entwicklung in den Schwellenländern

Top 15 in 2020

Top 15 im Jahr 2030 (Prognose)

Das BIP der Schwellenländer wird 2030 voraussichtlich fast 50 % des Gesamt-BIP der 15 wirtschaftsstärksten Länder der Erde ausmachen.

Quelle: IMF, HSBC, Statista, Federated Hermes

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Developing countries have fewer legacy issues than DMs when building new infrastructure. This confers an advantage when building smart cities; 5G networks, and transport networks.

Emerging Markets at the forefront of Digitisation


6bn in EM

>80% of the world


>2.6bn in EM

>80% of the world

Mobile Internet User

4.2bn in EM

>70% of the world

E-Commerce Sales

>$3trn in EM

China 52% of worldwide sales

Internet Users

2.8bn in EM

>70% of the world


$5.9trn globally

$2.9trn from China

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The move away from fossil fuels will be a strong economic driver. EMs are less weighed down by legacy grids and so are better placed to roll out smart grids, enabling two-way power flow and multi-stakeholder interactions.

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Entwicklungs- und Schwellenländer haben beim Aufbau neuer Infrastruktur weniger Probleme mit der Anpassung an bereits bestehende Strukturen und Systeme als Industrieländer. Dies wirkt sich etwa beim Aufbau von Smart Cities, 5G-Netzen und Transportinfrastruktur positiv aus.

5G-Basisstationen in den USA und China (2019 bis 2021)

Quelle: S&P Global Market Intelligence, Stand Februar 2022

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Many of the key resources needed for future growth and the energy transition are located in emerging markets.

Economic robustness
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Many EM companies have relatively robust fundamentals, with manageable levels of leverage and strong cash to assets. They are more used to, and therefore more resilient to, higher interest rates and cost of capital.

Manageable leverage in emerging markets

Net debt to EBITDA %

Source : HSBC as at April 2022.

Die Attraktivität Asiens

Die Region mit den meisten Schwellenländern bietet einzigartige Chancen

Asien bietet eine Reihe von strukturellen Vorteilen, die die Region angesichts wachsender konjunktureller und struktureller Probleme und Herausforderungen möglicherweise robuster macht als die Industrieländer.

Our EM solutions

Whether you’re interested in broad exposure to emerging markets or want to focus on a particular aspect of the emerging market opportunity, our product range provides the flexibility to invest in EM with a range of preferences in mind.


Global Emerging Markets Equity

Delivering holistic long-term returns through investing in structural thematic trends

Global Emerging Markets SMID Equity

Applying the GEMs philosophy to the small- and mid-cap universe

Global Emerging Markets ex-China Equity

Applying the GEMs philosophy to EM opportunities beyond China


Asia ex-Japan Equity

Employing a contrarian investment style to drive long-term returns

China Equity

Applying a contrarian investment style to China equities


Emerging Markets Debt

Delivering alpha through our expertise in a misunderstood market

Why Federated Hermes?

Federated Hermes has been actively investing in emerging markets for more than two decades.
Our understanding of EMs is reflected in our approach to managing risk, capturing value and engaging effectively with companies to maximise the potential long-term returns for our clients.
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Managing risk

Capturing value

Engaging effectively

Want to know more about our experience in Emerging Markets?