Investment strategy

Emerging Markets ex-China

Beyond China, beyond the dollar

Emerging equities are enjoying their best run in over a decade, and the story runs well beyond China. The strategy targets the most promising corners of the developing world, with a natural bias toward Asia's growth and technology leaders, while retaining the flexibility to draw on frontier and developed markets where the opportunity is strongest.

Two forces are driving that shift: capital rotating out of the United States, and a dollar under structural pressure. Layered on top is an AI investment boom that has turned Taiwan's and South Korea's semiconductor and memory champions into the emerging-market index's largest and best-performing names this year.

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The case for rotation

Capital rotates toward emerging markets whenever confidence in the US wavers, and it is wavering again: trade-policy reversals, war in the Middle-East and mounting pressure on the Federal Reserve are feeding a broader reassessment of America as the default destination for global capital. Layered on a structural growth premium (the IMF expects emerging economies to grow two and a half times faster than developed markets in 2026) that shift is what puts multi-year cycles of EM leadership back in play.

Why the dollar matters

The dollar is the main transmission channel. A weaker greenback lowers the cost of servicing dollar debt across the emerging world, cheapens local assets for foreign buyers, and redirects capital toward higher-yielding markets: the same mechanism that powered the 2000s supercycle. With Washington actively pursuing a weaker dollar as part of its reindustrialisation push, and the Federal Reserve's independence now openly questioned, the current decline looks more structural than cyclical.

How the strategy is built

Exposure is taken through a portfolio of listed index funds covering key markets across Asia, Latin America and the wider emerging world, deliberately excluding China. Using funds rather than individual shares keeps the strategy liquid and broadly diversified within each market, and avoids concentrating risk in single companies.

The strategy tracks a notional portfolio made up of three components:

A cash position denominated in US dollars.
Long positions in emerging-market index funds, excluding China.
Long and short foreign-exchange forward contracts, used to manage currency risk.

The portfolio is actively advised rather than index-tracking, by Silex Investment Partners together with Renalco. Its composition is reviewed and rebalanced as conditions change, so country exposure can be increased, reduced or removed altogether — which is what allows the strategy to lean into the markets where the opportunity is strongest at a given point in the cycle.

Geographic diversification
Access to several major emerging markets in a single position, while excluding China for a differentiated exposure.
Active management
The portfolio is actively advised, allowing dynamic adjustments as market conditions change rather than tracking a fixed index.
Transparency
Portfolio composition is clearly defined and refreshed at each rebalancing, and performance is reported net of all fees.

Where the strategy invests

Geographic exposure

The strategy is currently exposed to the markets highlighted below. Country weightings are reserved for professional investors.

Invested marketsUnited StatesChina — excluded

Composition as at 21 September 2026

Brazil
India
Malaysia
Mexico
Poland
South Africa
South Korea
Taiwan
Thailand
Vietnam

Market exposure is obtained through exchange-traded funds rather than direct shareholdings, and is shown aggregated by country.

Source: SILEX INVESTMENT PARTNERS SA. The accuracy, completeness or timeliness of information from external sources is not guaranteed, although it was obtained from sources reasonably believed to be reliable. SILEX INVESTMENT PARTNERS SA assumes no responsibility in this regard.

How the exposure has rotated

Markets are added and removed as the opportunity set changes. Each bar shows a period during which the strategy held that market.

Held today

Holding periods only. Country weightings are reserved for professional investors.

Reserved for professional investors

Country weightings, performance and product characteristics for this strategy are available to registered professional and institutional investors.

Discuss this strategy

Speak to our team about how this strategy could fit within a broader portfolio.

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Important legal information & full disclaimer

This document is produced by SILEX INVESTMENT PARTNERS SA a company limited by shares and incorporated under the laws of Switzerland, member of PolyReg, a self-regulatory organization according to Art. 24 of the Swiss Anti-Money Laundering Act. The information has not been prepared by the issuer or any of its subsidiaries. The issuer and its subsidiaries disclaim any responsibility for the content of this document.

This document does not constitute a prospectus/regulatory document or other offering document, nor does it constitute an offer or solicitation to purchase securities or other investments. It should not be construed as an offer to sell or a proposal to buy any securities in any jurisdiction in which such an offer or proposal would be unlawful. We are not soliciting any action on the basis of this document, which is provided to our clients for general information purposes. It does not constitute an investment recommendation or a personalized recommendation, and does not take into account the investment objectives, financial situation and needs of each client. Before acting on the contents of this document, we advise you to check whether it is suitable for your particular situation and, if necessary, to seek professional advice.

This document is confidential and may not be communicated to a third party (with the exception of external advisors and under the condition that they respect this confidentiality themselves) nor reproduced in its totality nor partially without prior written consent from SILEX INVESTMENT PARTNERS SA.