As we noted in earlier blog posts, emerging markets have experienced a long spell of gloom, but we believe their underperformance relative to developed markets has run its course, thanks to valuations, flows, dollar strength, corporate performance, and China’s ongoing rebalancing. But India also continues to stand out.

India is a market that we have been positive about for the last few years, in part because its gross domestic product (GDP) growth has accelerated while GDP in the rest of the world has remained relatively stagnant. India is now the fastest-growing major economy in the world, surpassing China for the first time in a generation, with close to 8% growth.

880_17 Figure_v1

Key drivers of the favorable environment have been a pro-reform government in addition to lower oil prices, inflation, interest rates, input costs, and taxes. As a result, operating margins have expanded and growth in earnings per share has accelerated.

We have continued to find attractive investment opportunities in India, largely because of these favorable tailwinds, but also because of good corporate governance and overall management quality that stands out within the emerging market universe.

One example of a longer-term growth opportunity we’re excited about in India is personal-care products, such as toothpaste, hair care products, basic consumer staples. The chart below shows why: Per-capita spending in India on personal care products is less than $10 per year. Brazil, in contrast, spends approximately $150 per year. We believe this bodes well for the growth potential in Indian consumer companies.

880_18-figure_v2

 

 

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Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

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The William Blair Funds are available to U.S. residents only. Non-U.S. residents, please click here.

Copyright © 2020 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus and summary prospectus, which you may obtain by calling +1 800 742 7272. Read the prospectus and summary prospectus carefully before investing. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

The William Blair Funds are available to U.S. residents only. Non-U.S. residents, please click here.

Copyright © 2020 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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