Asset Managers Increase Emerging Markets Exposure

Global asset managers overseeing more than $20 trillion are increasing exposure to emerging-market stocks, local-currency bonds and credit, Citi analysts reported on Feb. 26, 2026. The shift follows bets on stronger global growth and a weaker dollar, helping push the MSCI Emerging Markets index to record highs and EM local-currency bonds up 2.2% year-to-date. Managers cite underweight positions in US Treasuries and European sovereign debt.