Asset allocators view Emerging Markets separately, attracted by growth and inefficiencies but offset by sovereign risks and poorer governance. Applying the Pareto Principle twice can reduce EM first to Asia and then to four dominant markets - China, India, Korea and Taiwan (“TICK”?!). For Australians, this leaves no gap - non-Asia EM has similar sector mix to home. TICK’s combined profile mirrors the US but adds exposure across the spectrum of development. As investors chased Mag7, a wide valuation gap has opened up. Investors need a fresh growth narrative and must revisit Emerging Markets. TICKing off these four markets is the most efficient starting point for active stockpickers and opportunities abound.

Cameron Robertson | 0.75 CE