There are several key benefits that investors find attractive within EMD, including diversification, yield premium and a compelling opportunity for further returns from alpha generation. Key points Emerging markets provide investors with access to a wider array of idiosyncratic returns drivers which can be uncorrelated to other asset classes. EMD has provided investors with a meaningful yield advantage over developed market bonds, compensating them for venturing out of their core markets and providing an effective cushion against market volatility. EMD is an fertile ground for active management given the alpha opportunities available.