In this research report Watson Wyatt asserts that the long-term outlook for emerging economies will impact positively on emerging market investments, but it warns that choice of asset class and implementation route are not obvious. The firm also suggests that emerging market equities, debt and currencies are where exposure to the macroeconomic dynamics of emerging markets will be most readily obtained. In addition it discusses how emerging market economies will continue to grow strongly, due to a mix of rising productivity, economic and financial reforms, and favourable demographics. However, it states that institutional investors face significant complexity and potentially high fees when trying to build a portfolio that captures this long-term trend and should also recognise the governance implication of following such a strategy.