Emerging markets (EM) are diverse, not uniform. Our emerging markets teams work closely with our sector specialists, bringing together local insights and global context to identify nuances and perspectives that other investors may have missed.
As of 31 December 2025. All data specific to EM. AUM include those of Lazard Asset Management LLC (New York) and its affiliates, but not of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Inc. Number of investment professionals reflects firmwide personnel.
Accelerating Earnings at Attractive Valuations
EM companies currently offer a rare combination of above‑average earnings growth and attractive relative valuations, while giving exposure to essential technology, commodities, and expanding consumer markets.
Strong Fundamentals, High Real Yields
EM debt continues to offer income and diversification benefits.1 Corporate default rates are low,2 and many EM economies are cutting interest rates from a position of strength.
A Potentially Favorable Currency Backdrop
A weaker US dollar has historically boosted EM economies, currencies, and companies. Any resumption of recent dollar weakness would likely be a tailwind for EM equities and debt.
Better Earnings Growth Expectations for EM Versus Developed Markets
As of 31 December 2025. Source: FactSet, J.P. Morgan, MSCI.
Forward-looking estimates do not represent a promise or guarantee of results and are subject to change.
*CEEMEA—Central and Eastern Europe, Middle East, and Africa.
MSCI Emerging Markets Index
MSCI Emerging Markets Index
MSCI Emerging Markets Index
MSCI Emerging Markets Index
We see the current environment as one of the most favorable setups for emerging markets equities in over a decade. Despite robust performance in 2025, we believe the asset class is only at the start of a long phase of renewed relevance and recovery.
James Donald, CFA
Portfolio Manager/Analyst and Head of Emerging Markets
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Notes
1. Data as of 28 February 2026. Source: Bloomberg. Based on a comparison of real yields relative to emerging markets bonds and to US Treasuries.
2. Data as of 28 February 2026. Source: J.P. Morgan. The J.P. Morgan Corporate Emerging Markets Bond Broad Index composite default rate in 2025 and 2024 was 1.4% and 1.0% of the index, respectively.
Important Information
This document reflects the views of Lazard Asset Management LLC or its affiliates ("Lazard") based upon information believed to be reliable as of the publication date. There is no guarantee that any forecast or opinion will be realized. This document is provided by Lazard for informational purposes only. Nothing herein constitutes investment advice or a recommendation relating to any security, commodity, derivative, investment management service, or investment product. Investments in securities, derivatives, and commodities involve risk, will fluctuate in price, and may result in losses. Certain assets held in Lazard’s investment portfolios, in particular alternative investment portfolios, can involve high degrees of risk and volatility when compared to other assets. Similarly, certain assets held in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect investment performance. Past performance does not guarantee future results. The views expressed herein are subject to change, and may differ from the views of other Lazard investment professionals. Emerging and developing markets can face significant political, economic, and market risks, including but not limited to less developed legal and regulatory frameworks, potential currency volatility, lower liquidity, and greater information uncertainty. A portfolio investing in emerging markets may experience delays in buying, selling, and claiming ownership of investments, and may not recover the full amount invested.
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