E-commerce Opportunities Outside of Asia

E-Commerce Opportunities Outside of Asia

By: Paul Dmitriev, Senior Investment Analyst

The Covid-19 pandemic, which led to lockdowns around the world, changed the way people purchase products. Consumers that were stuck indoors for much of 2020 turned to online shopping, accelerating powerful but still nascent trends within the e-commerce industry. 

E-commerce trends in Emerging Asia, led by Chinese companies Alibaba, Tencent, Meituan, and JD.com, are a strong and familiar story to most investors. However, in this white paper, we look at e-commerce in emerging markets ex-Asia which is still in its early development phase. We break down why e-commerce penetration across Latin America and EEMEA should grow at a faster growth rate compared to their Asian Pacific and developed market peers in 2021 and beyond. 

For a list of the top ten holdings of the Emerging Markets Great Consumer Fund as of the most recent quarter-end click here. Holdings are subject to change at any time. 

The views and information discussed in this brochure are subject to change and may not reflect the current views of the writer(s). The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed that any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation.

Past performance is no guarantee of future results.

Investment Risk — There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including the potential of loss of principal.

Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.

Market Disruption and Geopolitical Risk — Geopolitical and other events, including war, terrorism, economic uncertainty, trade disputes, natural and environmental disasters, systemic market dislocations, public health crises and related geopolitical events have led, and in the future may lead, to increased market volatility, which may disrupt U.S. and world economies and markets and may have significant adverse direct or indirect effects on the value of a Fund and its investments.