Each week, a professional investor tells us where he'd put his money. This week: Kevin Carter, CIO and founder of the Emerging Markets Internet & Ecommerce UCITS ETF.
We believe that the rise of the middle-class consumer in emerging markets is the world's most compelling long-term growth theme. Emerging markets account for 85% of the world's population and nearly 90% of its under-30s; their GDP is also growing at more than twice the rate of the developed world's (4.4% vs 1.8%). The conditions for what the consultancy McKinsey & Co. calls "the greatest growth opportunity in the history of capitalism" are now being realised.
Where consumption meets technology
As they raise their standards of living and purchasing power, the digitisation of their economies is accelerating, creating new tech giants on a par with or larger than their Western counterparts. Nine of the top 20 internet companies in the world are based in emerging markets; seven of them didn't exist seven years ago.
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We are living through one of the greatest leaps forward in economic growth in history. Investors are looking for ways to gain targeted exposure to this secular growth story.
MercadoLibre:South American's e-commerce favourite
MercadoLibre (Nasdaq: MELI)
Pinduoduo: savings and fun in China
Pinduoduo (Nasdaq: PDD)
This method has facilitated rapid adoption in China's smaller cities. With only around 60% of the Chinese population owning a smartphone, the largest internet population in the world still offers ample upside.
MakeMyTripLIndia's top travel company
MakeMyTrip (Nasdaq: MMYT)
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