Emerging markets have come of age and should be included in the global opportunity set. These markets are comparable to many European markets in terms of size, turnover and efficiency. Over the period 1976-80 returns on emerging markets were relatively high and exhibited low correlations with returns on markets in developed countries.

Many of the barriers perceived as hindering investment in emerging markets are not as serious as they appear. In fact, the mildly segmented nature of these markets may provide international investors with the opportunity to capture excess risk premiums.