TIME TO RETHINK
EMERGING MARKETS

Several emerging markets have seized the lead in innovation and are leapfrogging established business models through innovation and technology. Yet, outdated perceptions about them persist. Sticking with these old assumptions can have serious implications for investors.

We believe that an undeniable change in the entire asset class is taking place, driven by the pursuit of a better life. In this context, we encourage investors like you to revisit your current allocation to emerging markets investments.

Take our quiz to test your emerging markets knowledge. Some of the answers might surprise you. If you’d like to find out more, our ‘Quick Guides to Emerging Markets’ break down all the basics and demonstrates how you could benefit from the dynamism of emerging markets.

We are here to help prepare you to take advantage of the opportunities available in the emerging markets asset class today.

Are you an emerging markets guru?

Find out with our eight quick-fire questions.

1 / 4

Over the past three years^, global stock markets have done quite well. The MSCI All Country World Index went up 10% annually*. How much did the stock market go up in China?
^ in Euro and as at 31 January 2019

Select the correct lantern

  • 15%
  • 13%
  • 11%
  • 9%
2 / 4

Rank the following countries in order of BMW car sales in 2018.

Drag and drop the country names to their position

USA
1st
Germany
2nd
China
3rd
Argentina
4th
UK
5th
3 / 4

What % of emerging markets exports go to other emerging market countries?

Select the correct ship

  • LESS THAN 30%
  • 30% - 40%
  • 40% - 50%
  • 50% +
4 / 4

Which of these countries consumes more Guinness than Ireland?

Select the correct country from the list below

  • Germany
  • Denmark
  • Nigeria
  • China
1 / 4

Which one of these countries has the biggest representation^ on the list of the world’s largest 100 companies (after the US)?
^ Weighted by market capitalisation

Select the correct country

  • Germany
  • Switzerland
  • China
  • United Kingdom
  • Japan
2 / 4

Three of these stock markets went up by around 50% over the past three years^. Which one did not?
^ in Euro and as at 31 January 2019

Drag the correct country below the line

Poland
China
Thailand
Germany
Drag below
3 / 4

Which of the following retail events generates the most online revenue?

Select the correct holiday from the list below

  • Black Friday in the US
  • Cyber Monday in the US
  • US Thanksgiving sales
  • Singles Day in China
4 / 4

Out of the following countries, which has the fastest mobile internet connection speed on average?

Select the correct sim card

  • USA
  • Sweden
  • Hong Kong
  • South Korea
7 / 8

Which one of these is not among the largest five companies in the world?

Select the correct logo

Scores

0/8

Oops. At least you know more now than you did five minutes ago. Our ‘Quick Guides to Emerging Markets’ break down all the basics, and demonstrates how your portfolio could benefit from the dynamism of emerging markets.

You were probably surprised by some of the answers. Want to find out more about emerging markets? Our ‘Quick Guides to Emerging Markets’ will give you more insight into how they could benefit your investment strategy.

Not bad. The staggering growth of emerging markets may have come as a surprise which resulted in this score. If you’d like to find out more, then our ‘Quick Guides to Emerging Markets’ will shed some more light on what emerging markets can offer your portfolio.

Pretty Good. You know your way around these markets. But as an investor, are you benefitting from sensible exposure to emerging markets? Our ‘Quick Guides to Emerging Markets’ will tell you more.

Well done! You are an Emerging Markets Guru! Even though you seem to know everything, are you confident you are actually benefitting from these markets as part of a balanced investment portfolio? Our ‘Quick Guides to Emerging Markets’ have some ideas.

MORE FACTS

$14.1TN

Market

$14.1TN

Market

The middle-class market in China in 2030 will account for 14.1 trillion US-Dollar, followed by India with 12.3 trillion US-Dollar, signalling huge growth and consumption opportunities. Both are comparable in size to a U.S. middle-class market at that time of 15.9 trillion US-Dollar1.

A huge factor in China`s growth has been in the investment in infrastructure. The amount of cement used in China between 2012 and 2015 was the same as all the cement used in the US in the last century2.

$335M

Joint Venture

$335M

Joint Venture

In Russia, Yandex is Google. Its default language is Cyrillic which has allowed it to remain the overall preferred search engine in Russia. It also has a cloud storage platform, Yandex Disk. Yandex Taxi has recently acquired Uber in Russia, cementing Yandex as one of Russia`s premier tech giants3.

746

Million Users

746

Million Users

Among the top three countries by internet users, the USA ranks third. The top spot is occupied by China boasting 746 million users4. This is equalling more than the US, Japan, Germany, UK, France and Spain combined. India comes second with 699 million users.

x2

FDA Approved Plants

x2

FDA Approved Plants

India is known for its low-cost pharmaceutical products. Biocon started life as a joint venture with a brewing company, growing enzymes for beer. They have since moved up the value chain to biopharma. India currently has double the FDA approved plants than the EU5.

1.4M

Applications Filed

1.4M

Applications Filed

More than half of the world’s new patent applications now come from emerging economies. China leads the charge with 1.4 million applications filed in 20176, more than the United States and Japan combined.

Leading Smartphone sales in emerging markets are almost three times7 that of developed markets.

$30BN

in Transactions

$30BN

in Transactions

In 2018, Alibaba cashed a record 30 billion US-Dollar8 on ‘Singles Day’, the world’s biggest online sales event, outstripping the sales of U.S. shopping holidays Black Friday and Cyber Monday combined. Alibaba recorded roughly $10 billion in sales in the first hour after midnight.

PORTFOLIO MANAGER'S PERSPECTIVE

Our range of emerging markets funds

TEMEMFI
LX

Templeton Emerging Markets Bond Fund*

As of 31/03/2019

Fund Size $10,94 Billion
Asset Class Fixed Income
Morningstar CategoryTM Global Emerging Markets Bond
Inception Date 05/07/1991

TEMCACU
LX

Templeton Emerging Markets Smaller Companies Fund*

As of 31/03/2019

Fund Size $999,49 Million
Asset Class Equity
Morningstar CategoryTM Global Emerging Markets
Small Mid-Cap Equity
Inception Date 18/10/2007

FRAINAA
LX

Franklin India Fund*

As of 31/03/2019

Fund Size $2,12 Billion
Asset Class Equity
Morningstar
CategoryTM
India Equity
Inception Date 25/10/2005

TEMFMAU
LX

Templeton Frontier Markets Fund*

As of 31/03/2019

Fund Size $619,82 Million
Asset Class Equity
Morningstar CategoryTM Global Frontier Markets Equity
Inception Date 14/10/2008

* Sub-fund of the Luxembourg-domiciled SICAV Franklin Templeton Investment Funds

Get started with franklin templeton emerging markets funds

Work with your financial advisor to fully capture the potential of the emerging markets investing. Together you can decide how best to incorporate these strategies into your portfolio.

Contact US

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