Emerging Equity Strategy
Unleashing the Growth Potential of Rising Economies.
ARO Asset Management pioneers a unique approach to navigating the dynamic, growth-driven landscapes.
The global economic landscape is shifting.
While developed economies inch forward, emerging and frontier markets are taking center stage, fueled by rapid growth, demographic tailwinds, and technological advancements. This presents a unique opportunity to gain exposure to the rising stars of the global economy.
We believe these markets hold immense potential for investors seeking sustainable, outperforming returns with our emerging market strategy.
Data-driven Approach
Emerging markets have been clearly growing exponentially.
By 2028, the share of global GDP by purchasing power parity (PPP) attributable to emerging & frontier economies combined is expected to surge to 62%, while advanced economies reflecting a downward trend in the chart on the left would represent only 38% of global GDP. This is a clear indicator of the immense potential locked within emerging markets, the rising stars of our global economy.
Emerging and Frontier Markets PPP
Emerging and frontier markets real GDP growth has surpassed and is expected to continue surpassing that of advanced economies.
The rapid growth of emerging markets
Demographics
Emerging markets boast young and growing populations, with a large portion entering their prime working years. This creates a strong foundation for future economic expansion.
Urbanization
As people move from rural areas to cities, they bring with them new skills and ideas, driving innovation and productivity. This is leading to the development of dynamic urban centers that are attracting investment and creating new opportunities.
Technological advancements
Emerging markets are rapidly adopting new technologies, and expanding financial inclusion. These advancements drive economic development and contribute to an array of positive social aspects such as greater gender equality.
The Unique Approach to our Emerging Market Strategy
We recognize the immense potential of emerging markets, but we also understand the challenges they present. That’s why we have developed a unique approach to traditional stock selection.
Technologically empowered strategy
Our strategy goes beyond the common boundaries of top-down and bottom-up investing, leveraging the power of BigData and ML algorithms in combination with independent country macro-research in our stock selection. We only focus on countries with robust growth forecasts and a certain level of political stability while targeting undervalued yet fundamentally strong companies.
Actively Navigating Emerging Market Alpha
We move beyond the limitations of traditional strategies. While passive funds may offer modest growth, substantial alpha potential resides within the dynamic landscapes of an actively managed emerging markets strategy.
Contact ARO for your tailored investment journey.
Navigate the emerging market landscape with confidence.
ARO Asset Management AG
Chemin du Vuasset 2, 1028 Préverenges, Switzerland
Phone: +41 21 575 1333
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