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<p><strong>As with any investment, your capital is at risk.</strong></p>
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<p><strong>Andrew Keiller</strong>: A growing number of the most important companies in the world are found in emerging markets. We have a broad set of countries and companies at very different stages of the development curve, with different structural growth drivers at play. But despite EM being a grouping, it's certainly true that more than one growth engine is at work. This matters because when we talk about emerging markets as an asset class, we find that some tend to focus on index-level outcomes.</p>
<p>This can obscure the real progress at companies, which is underappreciated. Even during the last decade or so, when EM index performance was largely weak, individual companies have built extraordinary businesses investing through downturns, strengthening competitive moats and, in many cases, leapfrogging their western peers.</p>
<p>Companies in Taiwan and Korea, from the large to the unknown and niche, have built the most advanced semiconductor ecosystem anywhere globally. Many of the world's vital energy and material producers are in Latin America, which are essential in enabling modern technologies, and from Asia to Eastern Europe to Latin America.</p>
<p>Consumer markets are formalizing and deepening faster than expected. In fact, if we look at revenue growth expectations, emerging markets are now home to more than two-thirds of the world's fastest growing companies.</p>
<p>2025 felt like a pivotal year. Emerging markets are now back on the front foot. The debate has finally shifted from ‘when does EM eventually stop being the underdog’ to ‘why shouldn't this strength be sustainable?’ And remember, there have been extended periods in the past where emerging markets outperformed developed markets, and when performance turns, it has tended to run for years.</p>
<p>So might we be at the beginning of the next supercycle for emerging markets? In this video series, we'll explore this, framing the opportunity over the long term.</p>
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<p>The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.</p>
<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>
<p><strong>Potential for Profit and Loss </strong></p>
<p>All investment strategies have the potential for profit and loss, your or your clients’ capital may be at risk. Past performance is not a guide to future returns.</p>
<p>This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research, but is classified as advertising under Art 68 of the Financial Services Act (‘FinSA’) and Baillie Gifford and its staff may have dealt in the investments concerned.</p>
<p>All information is sourced from Baillie Gifford & Co and is current unless otherwise stated. </p>
<p>The images used in this communication are for illustrative purposes only.</p>
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