Fidelity portfolio manager Alex Duffy says emerging markets contribute 60% of global GDP and now, more than ever, the asset class is playing a crucial role in the global economy.

Despite this, Duffy says emerging markets are still heavily under-represented in global equity indexes and this leaves many investment opportunities unseen. This, coupled with rising company valuations and more day-to-day volatility, means Duffy has to be more discerning in managing risk.

In the accompanying article, the portfolio manager discusses why he only owns good businesses that he understands, and why he'll own them for as long as possible.