What Level of Portfolio Disaggregation in Emerging Market Investments?

27 Pages Posted: 23 Apr 2004

See all articles by Nuno Fernandes

Nuno Fernandes

University of Navarra, IESE Business School; European Corporate Governance Institute (ECGI)


Liberalization of capital markets in emerging markets during the last two decades has caused an increased responsiveness of these countries equity markets to world factors. What are the implications of globalization to international asset allocation? We find that global portfolio managers no longer can add significant value by pursuing indexing strategies in emerging markets. The empirical analysis shows that aggregate diversification across all emerging markets is no longer enough to create value. Country and stock selection strategies are imperative, if a global portfolio manager wants to outperform benchmarks.

Keywords: Emerging markets, international diversification, indexing strategies

JEL Classification: F36, G11, G15

Suggested Citation

Fernandes, Nuno, What Level of Portfolio Disaggregation in Emerging Market Investments?. Available at SSRN: https://ssrn.com/abstract=534663

Nuno Fernandes (Contact Author)

University of Navarra, IESE Business School ( email )

Avenida Pearson 21
Barcelona, 08034

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
PlumX Metrics