In this insightful publication, Symbiotics delves into the factors behind the reluctance of investors to engage with emerging markets. Impact investing in emerging markets is often excluded from investment strategies due to a psychological bias towards risk aversion. This reluctance is further amplified by negative media coverage and domestic biases. However, emerging markets are projected to contribute 70% of future global growth, making their inclusion vital for capitalizing on this potential. Many risks, such as sovereign risk, are often overstated. In reality, default rates in emerging markets are comparable to those in developed markets, and the lower correlation of emerging market currencies to the dollar offers better diversification.