He believes that deepening trade links between emerging market economies means that intra-emerging market trade is accounting for a larger share of global trade as a whole. This helps create a degree of insulation from external shocks and allows emerging market countries to diversify their supply chains away from established trade relationships.

Rising incomes and an increasingly urbanised population within emerging market economies are also allowing local companies to focus on internal markets while drawing the attention of multinational ones to invest in the region to gain a larger market share.

Hammonds co-manages the Guinness Emerging Markets Equity Income strategy which aims to provide investors with capital growth and income by investing in emerging markets worldwide, providing returns of 8 per cent. The fund is exposed to dividend paying companies in emerging markets worldwide. He invests in companies with good track records.

Top holdings include Taiwan Semiconductor Manufacturing Company (TSMC), Taiwan’s Elite Material in the electronics supply chain, Taiwan’s Hon Hai Precision Industry in electronic manufacturing, Mexico’s Coca-Cola Femsa and China’s Anta Sports. Top countries are China, Taiwan, Brazil, India and Mexico. Top sectors include financials, tech, consumer staples and discretionary.