Is your operating model set to capitalize on emerging markets in 2024?

Soaring performance in 2023 has driven heightened investor interest in emerging markets (EM). According to Hedgeweek, Latin America showed returns of 18.3%, India stood at 27.3%, and the total EM Index was up 6% across all regions. Franklin Templeton and Lazard Asset Management expect EM earnings growth to accelerate in 2024, highlighting the favorable dynamics.

For investment managers already investing in emerging markets:

• The ability to quickly integrate new EM trading opportunities for both hard and local currency into existing portfolios is critical to realizing value from an expanded strategy.
• A broader EM profile requires support for multi-currency transactions including swaps and FX.

Without an investment management platform that can meet these needs, rapidly onboard new funds, and provide an end-to-end operating model, an investment manager can find their window of opportunity shrinking or their margins eroding.

For those exploring emerging markets for the first time:

• Having an investment management platform that supports multi-currency, multi-jurisdiction investments makes their strategy easier to achieve.
• Accessing embedded portfolio and compliance tools that automatically check investments against global events, portfolio limits and sanctions can let them act with confidence.
• Streamlined technology and end-to-end operational support can make the difference between realizing value and seeing it absorbed by a higher cost base.

Real-time data and end-to-end workflow are essential

Access to real-time information and integrated front-to-back solutions enables traders to move from insight to rapid execution. Enfusion offers an end-to-end investment management platform with unified underlying data, comprehensive reporting (including risk metrics, corporate actions, and terms and conditions reporting) and consistent support across markets whether developed, emerging or frontier. Currency fluctuations pose operational challenges, but Enfusion’s multi-currency, multi-asset capabilities support seamless workflows and mitigate risk.

The platform’s flexibility and scalability allow investment managers to adjust allocations and refine strategies without switching providers, ensuring nimble responses to new trading opportunities. Enfusion provides baseline functionality like pre-populated security master files, workflow automation, and the ability to use different asset classes for risk management. Trading is seamless across currencies and jurisdictions, offering continuous visibility into portfolios and risk profiles, enabling investment managers to identify shifting conditions and capitalize on new opportunities.

Explore more. Learn how Enfusion can support your Emerging Market Strategy. Contact us or learn more about our investment strategies.