This page looks at both the structural and cyclical case for investing in emerging market assets. The right hand side looks at the emergence of the EM consumer by measuring various EM countries’ middle class as a percentage of the total population. We can see that just in the last twenty years the middle class has grown tremendously in size, and this story is set to continue over the next decade as well, especially in countries like India and China. This is a tremendous opportunity for global and local companies that can tap into these new consumers. On the left hand side we show the growth bump that emerging markets provide compared to developed markets by looking at the growth differential between the two. In the long‐run this should result in faster earnings growth in emerging markets and hence higher returns. Cyclically, it is a positive when this growth differential gets wider as it tends to correlate well with when EM equities outperform DM equities.