What’s Happening in EM: Inflows Gain Traction (Podcast)

Analysts Marcus Wong and Malavika Kaur Makol project a significant increase in capital inflows into emerging market assets during the final quarter of 2025, signaling an anticipated period of strengthening performance for the sector.

Analysis

What's Happening in EM: Inflows Gain Traction What's Happening in EM Inflows Gain Traction Marcus Wong and Malavika Kaur Makol discuss how emerging market assets are set to perform in the last three months of the year, with inflows set to gain traction into developing market assets. Oct 05, 2025 According to analysts Marcus Wong and Malavika Kaur Makol, emerging market assets are expected to experience a significant acceleration in capital inflows during the final quarter of 2025. This forecast, which carries a moderately positive sentiment, points to a strengthening technical backdrop for the asset class. An increase in fund flows is a key indicator of rising investor confidence and demand, which often precedes or coincides with positive price performance. The analysis suggests that developing market assets are set to gain traction, positioning the sector for a potentially strong finish to the year based on this shift in capital allocation.

Key Decisions for Investors

• Investors may consider increasing exposure to emerging markets to capitalize on the forecasted acceleration in capital inflows for Q4 2025.
• Monitor emerging market fund flow data closely in the coming weeks to confirm that the projected trend is materializing, which would serve as a key validation signal.
• Given the general nature of the forecast, a diversified strategy using broad-market emerging market funds or ETFs is an advisable approach to capture this potential upside.