Emerging markets are positioned for a new supercycle of outperformance after years of underperformance, driven by multiple structural tailwinds: Valuation disconnect creates opportunity : EM equities trade at a 40% discount to developed markets despite representing 60% of global population growth, 50% of world GDP, and 65% of global GDP growth. Strong earnings momentum—projected at twice the rate of developed markets—provides fundamental support for rerating. Structural shift away from US dollar dominance : Accelerating de-dollarization by central banks and increased intra-EM trade (now over 50% of total EM trade) supports currency appreciation and reduces vulnerability to US policy. The asset class benefits from improved fundamentals including government debt at half the level of developed markets and current account surpluses. Technological leadership in AI value chain : Korea and Taiwan dominate the AI manufacturing supply chain with global semiconductor champions trading at significant discounts to US peers, while China has emerged as a leader in EVs, batteries, and robotics following its decade-long innovation push. Corporate governance reforms unlock value : Korea's "Value Up" program and China's new focus on shareholder returns through buybacks signal a fundamental shift toward profitability over growth, addressing historical underperformance drivers.