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<p><strong>As with any investment, your capital is at risk.</strong></p>
<p><br><strong>Andrew Keiller</strong>: Emerging markets today look very different from the emerging markets of the past. They're much more resilient. Across several major emerging economies, inflation is contained. Policy has been more orthodox than many developed markets. And central banks have room to support growth if needed. And that's a very different starting point from previous emerging markets cycles. One example we can point to is public debt levels.</p>
<p>As you can see, these are materially lower than in many developed economies like the US. So the old tale the emerging markets are fiscally weak, no longer holds. Also, EM countries are now borrowing more in their own currencies rather than relying heavily on dollar funding. That is reducing their vulnerability and actually making them less exposed to dollar swings.</p>
<p>In 2025, EM sovereign debt upgrades outnumbered downgrades, something we haven't seen for over a decade. And that matters because when you combine an improving macro environment with the ability to invest in more and more great companies, that's when investors sit up and take note.</p>
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<p>This communication was produced and approved in March 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.</p>
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