Derrick Irwin, Senior Portfolio Manager and Co-Head of the Intrinsic Emerging Markets Equity Team for Allspring Global Investments, joined Zoe Hunt, Host of RIA Channel, to discuss the resilience of emerging markets, opportunities in AI, and the asset class’s evolving fundamentals.
Through 2026, Irwin highlights the resilience of emerging markets, even amid geopolitical conflict and higher fuel prices. He notes that many Asian emerging markets have been able to adapt to fuel supply challenges by finding new sources and shifting toward renewable energy, underscoring what he sees as a broader trend of stronger, more resilient emerging markets.
Irwin also examines the impact of AI on emerging markets. He highlights major chip providers in Taiwan and Korea, which have helped drive returns, while also pointing to less explored areas, including China’s AI ecosystem. Despite lacking access to the same chips as the U.S., Irwin says China has developed its own models and business use cases with significantly less capital expenditure.
Irwin emphasizes that emerging markets are fundamentally different from past cycles. He points to reduced dependence on global funding flows, stronger fundamentals, and greater resilience, suggesting investors should evaluate the asset class through a different risk lens than they may have 10 to 20 years ago.
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