Consistency as a Compass in Emerging Market Equities

State Street Investment Management’s report outlines how a disciplined, risk-adjusted approach—focusing on Information Ratio (IR)—offers a more reliable framework than chasing excess returns in emerging markets.

• Excess return rankings prove unstable: top-quartile managers often fall to lower quartiles within a decade, underscoring the limits of return-chasing.

• Enhanced, lower-risk strategies deliver the strongest and most stable IR, balancing alpha generation with drawdown control.

• Core allocations provide consistency across cycles, mitigating style, sector, and geopolitical risks.

Explore the full report to see why efficiency and predictability may matter more than headline returns in EM equities.