A new era for emerging markets | East Capital Q2 2026

2026-07-10 14:30:00

Emerging and frontier markets delivered another strong quarter, led by South Korea and Taiwan, which overtook China to become the two largest markets in the MSCI Emerging Markets Index, marking something of a new era for emerging markets.

Highlights from Q2 2026:

Emerging markets returned 24%, while frontier markets gained 11% during the quarter (in USD).

South Korea and Taiwan led performance, supported by earnings upgrades, robust demand for AI-related hardware and continued strength across the semiconductor sector.

We continued to rebalance portfolios by taking profits in selected AI-related holdings while identifying new investment opportunities, including K-Beauty and other overlooked sectors.

Frontier markets delivered a solid quarter, with Nigeria among the strongest contributors and valuations remaining attractive.

We believe the backdrop for emerging and frontier markets remains constructive, supported by attractive valuations, improving fundamentals and continued opportunities for stock picking.

Read East Capital’s full Q2 commentary for a deeper analysis of market developments, the impact of AI investments and our outlook for emerging and frontier markets.

Watch the latest episode of Meet East Capital, where CIO Jacob Grapengiesser and Portfolio Manager David Nicholls discuss Q2 performance and the investment opportunities they currently see across emerging and frontier markets. Watch the episode on YouTube.

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Risk information - East Capital
Investing always involves risks. Please refer to information on the fund page before making any investment decisions www.eastcapital.group. Past performance is no guarantee for future performance. Fund units may go up or down in value and may be affected by changes in exchange rates. Investors may not get back the amount invested.

This is marketing communication. This information is intended solely for investors in jurisdictions where the funds are registered. It must not be distributed or made available in any other jurisdiction where such distribution would be contrary to local laws or would require registration or approval. This communication does not constitute an offer or invitation to invest in jurisdictions where the fund is not authorized for marketing.

The information contained in this document should not be used as the sole basis for an investment decision. Full information about our funds, such as prospectus, key information document (KID) and financial information can be found on the website and can be obtained free of charge from us or our local representatives.
www.eastcapital.com

About East Capital Group
East Capital Group is a global asset manager based in Sweden since 1997. We offer a range of investment solutions within equities, fixed income securities, real estate and alternatives. The essence of our business is not only to find attractive investment opportunities, but also to work to drive positive change, influencing industries around the world to become more sustainable. We have a broad range of international investors including leading institutions, companies and private individuals.

Within East Capital Group you will find East Capital - specialising in emerging and frontier market strategies, East Capital Real Estate - managing commercial real estate investments with a focus on Central and Eastern Europe, Espiria - offering bespoke global and Nordic equities and fixed income strategies, and Adrigo - a Nordic long/short hedge fund. East Capital Group owns 49% of Cicero Fonder and 51% of Hjerta AB.

For more information, please visit www.eastcapital.group.

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