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“We really try to follow the consumer. When you get that mass market taking off, that’s more in the basic industries that we take for granted in our part of the world but are really luxury items in Africa, Southeast Asia, Central America.”

Thomas Vester

Chief Investment Officer and Portfolio Manager



Embrace the emerging consumer

Embrace the emerging consumer

Across emerging markets, trends in population demographics have produced a growing number of spenders. According to a recent study, consumption growth is forecasted to be more than four times that of the developed world, reaching $30T by 2025.¹ This equates to a “consuming class” of approximately 4.2 billion people,² resulting in a significant opportunity for investors.


Estimated 2030 population by age group⁴

Estimated 2030 population by age group⁴

Many emerging countries have young, fast growing working-age populations, which may impact growth in consumer spending.



Share of global middle class spending⁵

In developing countries, middle class consumption growth is estimated to be higher than in more developed nations.

Share of global middle class spending⁵

In developing countries, middle class consumption growth is estimated to be higher than in more developed nations.




Notes from the road

Notes from the road

Gain a new perspective on the developing world and explore new markets with our investment team.

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Our investment approach

Our investment approach

We are active, bottom-up, fundamentally-driven stock pickers that conduct boots-on-the-ground research. We seek to invest in dominant industry players who offer basic goods and services to rapidly growing urban populations.

Stability and predictability

We seek to invest in stable, predictable business models which exhibit quality characteristics such as strong cash flow generation, robust balance sheets, proven management teams and alignment with majority shareholders.

Long-term focus

We invest with a long-term, strategic perspective and do not engage in opportunistic behaviors.

Unconstrained, bottom-up approach

Our bottom-up approach to portfolio construction yields benchmark agnostic portfolios with high active share.

Thomas Vester

Listen: Emerging markets podcast

Thomas Vester, Chief Investment Officer and Portfolio Manager, shares the LGM Investments philosophy to investing in emerging markets on the Better conversations. Better outcomes. podcast.

View episode page


Allocation to consumer staples³

Allocation to consumer discretionary³

Return on invested capital




Investment solutions

Investment solutions

Institutional strategies

Strategy Inception date AUM
(as of 6/30/18)
Benchmark Performance and characteristics
BMO LGM Global Emerging Markets Equity Strategy 12/01/07 $1.8 billion MSCI Emerging Markets NDR Index View fact sheetFact sheet
BMO LGM Frontier Markets Equity Strategy 01/01/12 $1.1 billion MSCI Blended NDR Index⁷ View fact sheetFact sheet
BMO LGM Responsible GEM ESG Strategy 04/01/10 $461 million MSCI Emerging Markets Total Return Index View fact sheetFact sheet

Mutual funds

Fund Ticker
(share class)
Benchmark Performance and characteristics
BMO LGM Emerging Markets Equity Fund BAEMX (Class A)
BGLBX (Class I)
MSCI Emerging Markets Index Net



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¹ Source: McKinsey & Company, “Winning the $30 trillion decathlon”.

² ibid. Ex:2 FN1 ”Consuming class: daily disposable income is ≥$10; below consuming class, <$10; incomes adjusted for purchasing-power parity.

³ Source: BMO Global Asset Management and Morningstar Direct as of 6/30/2018.

⁴ Source: United Nations World Population Prospects 2017.

⁵ Source: Brookings Institute, “The Unprecedented Expansion of the Global Middle Class,” February 2017.

⁶ Source: Factset and BMO Global Asset Management as of 6/30/2018. Calculation excludes Financials.

⁷ MSCI Blended NDR Index is made up of 50% MSCI Frontier Markets & 50% MSCI Frontier Markets ex GCC countries.

The MSCI Frontier Markets Index captures large- and mid-cap representation across 24 Frontier Markets countries. The MSCI Frontier Markets ex GCC Index captures large- and mid-cap representation across 24 Frontier Markets countries excluding those countries in the Gulf Cooperation Council.

The MSCI Emerging Markets Index is a market capitalization weighted index comprised of over 800 companies representative of the market structure of the emerging countries in Europe, Latin America, Africa, Middle East and Asia.

Investments cannot be made in an index.

Investing in emerging markets can be riskier than investing in well-established foreign markets.