Summary

• We believe the case for emerging markets has become increasingly compelling.
• The U.S. dollar's 2025 decline was the worst calendar-year performance in over 20 years, and the conditions behind it are still in place.
• EMs' 2025 rally was built on strong earnings, not hope or cheap money.
• We believe the global AI buildout could end up being the largest infrastructure investment cycle in the history of technology.

We believe the case for emerging markets (EMs) has become increasingly compelling. Between a weakening U.S. dollar, strengthening fundamentals, and attractive valuations, the asset class appears well positioned for renewed investor interest, with recent outperformance suggesting EM equities may be at the start