Emerging Markets achieved a compound annual growth rate of 5.5% in the last 10 years
Source: World Economics, July 2025
Why invest in Emerging Markets?
Why Invest in Emerging Markets?
Emerging markets are at the forefront of global economic expansion:
Rapid Growth Rates
Over the past decade, emerging markets achieved a compound annual growth rate (CAGR) of 5.5%, compared to 1.9% for developed markets. Source: World Economics, July 2025
Rising Incomes and Consumption
Increasing personal incomes are driving consumption and fostering the development of a robust middle class.
Demographic Advantages
Many emerging economies are supported by favourable demographics. In India, for instance, 10 million people join the workforce every year, fuelling productivity and economic momentum. Source: Confederation of Indian Industry, July 2025
Infrastructure Boom
Large-scale infrastructure projects across emerging markets are catalysing further economic expansion and modernisation.
Investing in emerging markets means capitalising on these dynamic trends, with the potential to enhance your portfolio’s growth and resilience.
Risk: The Guinness Emerging Markets Equity Income Fund is an equity fund. Investors should be willing and able to assume the risks of equity investing. The value of an investment and the income from it can fall as well as rise as a result of market and currency movement, and you may not get back the amount originally invested. The Fund invests only in stocks of companies that are traded on Emerging Markets stock exchanges or do at least half of their business in Emerging Markets; it is therefore susceptible to the performance of that region and can be volatile.
Why Now?
Emerging markets are at a pivotal moment, offering unique opportunities for investors looking to capture growth and diversification. Here’s why the time to act is now:
Accelerated Economic Growth
- Over the past decade, emerging markets have consistently outpaced developed economies, growing at an average of 5.5% annually, compared to just 2% for developed markets.
- Current demographic trends, such as India’s workforce expansion of 1 million people per month, are driving productivity and economic output.
Expanding Consumer Markets
- Rising incomes are fostering a rapidly growing middle class, leading to increased consumption and new investment opportunities.
- These economies are evolving into major global consumption hubs, with demand for goods and services set to rise significantly.
Infrastructure and Modernisation
- Major infrastructure projects are transforming emerging markets, creating long-term growth drivers and enhancing economic efficiency.
- Governments across these regions are prioritising modernisation, making now an ideal time to invest in their progress.
Fund Benefits
The Guinness Emerging Markets Equity Income Fund is designed to provide investors with long-term capital appreciation and income growth by investing in emerging markets worldwide.
High Return on Capital
At the heart of our process is a focus on the underlying business and the cash flows generated by that business.
Growth and Income
Companies generating above-cost returns often provide dividends, a sign of capital discipline...
High Conviction
The strategy typically invests in 36 companies with equal weighting...
Low Turnover
We prefer to invest over the long term. We also recognise the increased costs of trading...
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Emerging Markets Investment Philosophy
Portfolio Manager Mark Hammonds explains the pillars of the Guinness Emerging Markets Equity Income Fund investment philosophy.
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Emerging Markets Insights
How consumers are driving emerging markets’ future
Emerging Markets Dividend Investing
Investment Team
Why Choose Guinness
We construct high-conviction portfolios of 30-40 ‘best ideas’, unconstrained by benchmark considerations. Most of our portfolios take an equal-weight approach and are rebalanced periodically or on flows.
The clarity of our approach and consistent methodology make the characteristics of the portfolio easier to measure. This starts with the definition of the investment universe and the business attributes we look for, proceeds to the structured analytical framework and systematic approach we employ, and culminates in the construction and maintenance of our portfolios. As a result, the behaviour of a portfolio in different market conditions, while not guaranteed, becomes more predictable.
Our senior employees and fund managers have worked together for many years.
We are employee-owned with a significant long-term holding held by the Guinness family.
We target equal weights in our portfolios, unconstrained by benchmarks.
How to Invest with Guinness
We aim to make it simple to invest in our funds. All our funds are open to direct investment via an application form. In addition, they are widely available on investment platforms and are eligible for UK investors' ISAs & SIPPs.
Invest in our funds through a range of investment platforms (fund dealing websites/supermarkets). Dealing through platforms is suitable for all types of investment, including via an ISA or SIPP.
Invest in the funds directly via an application form sent with payment to the funds' administrators.