Excel Funds Management Inc.

Emerging Markets

Middle class in emerging markets that will make up more than 40% by 2050.

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Karen Ward and Frederic Neumann economists for HSBC are predicting there will be an unprecedented expansion of the middle class. Their conclusion is based on the expanding middle class in emerging markets that will make up more than 40% by 2050. Demographics will also play a big role as the median age in India is 26 and Brazil is 29 compared to the US of 39. Karen Ward is also expecting that 59% of gadgets will be consumed by emerging markets by 2050 up from 25% today. Financial services will increase from 18% to 56%. Another important factor to consider is the rise of the service sector in emerging markets that will help protect EM countries from movements in global trade.

 

Emerging market consumers will become the driving force for growth from this point forward. For these reasons it’s important to have a portion of clients assets allocated to emerging markets. Otherwise clients will be missing out on opportunities for growth and diversification in their portfolios.

Written by Jeff K.

Kennedy, S. (2012, October 18). Middle Class in Emerging Markets Means Growth: Cutting Reseach. Bloomberg Businessweek. Retrieved October 22, 2012, from http://www.businessweek.com/news/2012-10-18/middle-class-in-emerging-markets-means-growth

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Author: Excel Funds Management

We Are Leaders. Our Focus is Undivided. Excel Funds is Canada’s specialist in Emerging Market investment opportunities. We pioneered Emerging Market mutual fund design and distribution in Canada. Our focus is undivided – Emerging Markets is all we do. Our Mission Is To Offer Canadians True Global Access By offering Canadians access to rapid growth markets, Excel Funds provides truly global and diverse investment value. Our clients want consistent, responsible and intelligent solutions – we will never stop being challenged and deliver on client expectations. We Listen. We Are Determined To Deliver. Our clients want to understand better. Excel Funds is the only company dedicated to providing investors with actively managed, best-in-class Portfolio Managers based in regional markets. In order to deliver deeper understanding, we are not removed from unique cultural, political and economic experiences. We Initiate. We Create. Investors benefit from strong, sustainable growth. To create wealth for our clients we will: • Offer globally diverse opportunities to capture shifts in world economies • Not resist change and continually lead in Emerging Markets global growth • Engage world class institutional managers for retail investors We Are Passionate. We Will Never Stop Innovating. True leadership is enabling and seeks a positive outcome for all invested. We will not rest on past success, and continue to provide clients with: • Innovative fund structures • Canada’s largest & most comprehensive Emerging Markets products • The best institutional level Portfolio Managers • World class on-the-ground active managers • A singular focus on Emerging Markets, the driver of global growth

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