Editing Utilico Emerging Markets Trust (section)

==Market outlook: Reiteration of favourable growth in EM==

While there is undoubtably uncertainty in global markets due to the ongoing pandemic effects and more recently the war in Ukraine, emerging markets continue to have higher growth potential compared with developed markets. Factors driving this higher growth rate include urbanisation, a rising middle class and digitisation. In its January 2022 World Economic Outlook update, the International Monetary Fund forecast GDP growth of 4.8% in 2022 and 4.7% in 2023 for emerging markets and developing economies compared with 3.9% and 2.6% respectively for advanced economies. Highlighted in Exhibit 1 (right-hand side), emerging market and emerging market infrastructure equities remain more attractively valued compared with the world market on a forward P/E and price-to-book multiple basis and offer a higher dividend yield. With better growth potential and relatively attractive valuations, investors may benefit from considering an allocation to emerging markets, taking into account that infrastructure and utility businesses may have more stable returns compared with those in other areas.