Why emerging markets have changed

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews Will Sutcliffe, Head of Baillie Gifford’s Emerging Markets Equities Team, about the evolution and nuances of investing in emerging markets. Sutcliffe reflects on his early experiences, the challenges and changes in the composition of emerging market indices, and the increasing caliber of companies within these markets. He addresses the perception of risk, the impact of geopolitics, and specific investment opportunities in China, Brazil, and India, highlighting companies like TSMC, Natura, and Jio Financial Services. Sutcliffe also discusses their approach to investing in companies undergoing environmental transitions, emphasizing the importance of supporting and challenging them towards improvement. The conversation concludes with a discussion on whether the term "emerging markets" should be retired and Sutcliffe's current reading material.