Sector review: Three Asia and EM equity funds for 2026
Responsible investment in Asia and emerging markets is entering a new phase. Recent years have been marked by geopolitical tensions, policy shifts and changing political narratives. This has led in general to negative sentiment towards the region and a narrow market leadership as well as concentration risk, while from a style perspective, value has tended to outperform growth and quality (the latter traditionally deemed as ‘safe’).
The combination of higher interest rates, inflationary pressures, and uneven post-pandemic recoveries has led to plenty of companies being de-rated and responsible strategies generally underperforming relative to broader benchmarks and sustained outflows from ESG labelled funds.
Yet, despite…
