1. Brazil
Brazil has been among the hardest hit by the Covid-19 pandemic, just behind the United States and India in the number of reported cases. However, we have started to see the number of new cases in Brazil start to decline. Ironically, we believe that the government’s decision against implementing a country-wide lockdown at the onset of the pandemic has reduced the likelihood of a second wave. Heavy government spending and monetary policy easing have helped bring some stability to the economy. Moreover, Brazil has continued to implement key reforms despite political noise. Interestingly, Brazil’s stock exchange itself has a strong sustainability agenda, while environmental, social and governance (ESG) principles are not only implemented within the exchange itself, but also promoted in the Brazilian stock market broadly. E-commerce is another exciting investment theme, with several large players competing in the online space. As in other countries, the Covid-19 crisis has accelerated the adoption of internet-based retailing in Brazil.

2. Health care in China
The Covid-19 pandemic has underscored the importance of health care in China, reinforcing existing structural trends that could
drive a new wave of innovation in the country. Multiple factors are propelling domestic drug and medical device development including rising healthcare demand, an ageing population, growing lifestyle diseases and rising income, coupled with government efforts to strengthen the health care system. In addition, the growing numbers of overseas-educated Chinese scientists and entrepreneurs returning to the country constitute an abundant pool of homegrown talent. Together with flourishing capital markets, favorable policies and motivated talent, a vibrant ecosystem is potentially taking shape.

3. Company engagement
Company engagement remains a crucial part of emerging market (EM) investing. Bringing about better corporate behaviour and a better understanding of companies’ responsibilities toward all stakeholders are efforts we continue to push in our stewardship of client capital. The tone of engagement in EMs has shifted in recent years: companies that formerly took a narrow, hard-nosed approach to returns are adopting more accommodative measures. In our view, this ‘delta’ of improving ESG in EMs is a further tailwind supporting
the secular outlook for the asset class as the world emerges from this crisis.

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