Emerging markets outperformed developed ones in 2025, driven by a weaker US dollar, stronger relative earnings revisions and improving return on equity (ROE). Corporate governance has also been improving in the region. However, the conflict in Iran sent oil prices to new highs, sparking inflation risks, strengthening the dollar, and making emerging market assets and oil importers vulnerable.

But Bourke, who manages the M&G Global Emerging Markets Fund, said that emerging markets had a strong start to the year. “Emerging markets are quite robust and valuations are attractive. Economic growth in the region is also double that of the US and four times as much as Europe,” Bourke told this news service at a London media event this week organised by , has a base-case scenario that is short-lived, with an intense spike in oil and gas prices. He sees oil prices topping in the $80s to $90s, and gas prices in the €40s ($46.5s) to €50s in March before easing into summer, recognising the dynamics and uncertainty of the situation. This week, Rücker reiterated his neutral views on oil and global gas prices, taking into consideration the current war in the Middle East.

, also told this news service this week that emerging market valuations remain attractive and that they can pass on any higher energy costs. Tech has provided strong returns over the long-term and IT spending continues to grow, with Gartner forecasting 9.8 per cent year-on-year growth worldwide in 2026.

In the Allianz Global Hi-Tech Growth Fund, Gleeson is overweight in Asian tech, with significant exposure there. Top holdings include Taiwan Semiconductor Manufacturing Company (TSMC) and Chinese tech multinational Tencent where he is overweight as well as Korean-based semiconductor memory manufacturer SK Hynix and Samsung Electronics. He is also heavily exposed to the US, but remains underweight there. Holdings include US tech firms Microsoft, Nvidia and Alphabet.

A number of wealth managers have been stepping up exposure to emerging market equities recently. Benjamin Melman, global chief investment officer at Paris-headquartered fixed income, believes that the resilience of emerging markets will be tested as a result of the Iran conflict. “Here we might see the strongest impact after a very strong start to the year in emerging market assets. This crisis will likely underline again the divide between oil exporters and oil importers, with the latter in a much more vulnerable position. Emerging market assets will likely now feel the effects of the dollar's strength and potentially higher US interest rates against the backdrop of higher oil prices,” Desai said in a note.