The strength of emerging market cash flows
observed over the last few years can be explained
by a number of factors, including opportunity for
global diversification, heady trailing returns, and the
newfound ability of investors to access emerging
markets through liquid, low-cost, indexed vehicles.1
Despite the numerous factors impacting emerging
market stock returns, investors increasingly cite
the rapid growth of emerging market economies as
the primary motivation for boosting their strategic
allocation to emerging markets in their global
equity portfolios.