Sara Moreno, Emerging Markets Equity Portfolio Manager, discusses her views on investing in emerging markets in light of the coronavirus. Once the epidemic settles, she expects long-term secular trends in developing economies, including urbanization, the rise of a consumer middle class, and other demographic trends, to once again come to the fore. The outbreak may also provide impetus to accelerate the pace of reforms in China that are supporting the development and use of innovative drugs as well as increased efficacy in hospitals, where most Chinese access health care. Although many Chinese health care stocks have appreciated significantly over the past year, secular trends suggest further growth. Contract research organizations (CROs), which are benefiting from Chinese and Western pharmaceutical company outsourcing of clinical development and manufacturing, are a good example.
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