The Rise of Brics+: Why Investors Must Rethink the Traditional Playbook

In the decades following the Cold War, investors operated on three central assumptions: that free trade would flow uninterrupted, globalisation would continue to expand, and the international system would remain relatively peaceful under Western leadership. But the rise of Brics+ — a maturing coalition of nations led by Brazil, Russia, India, China, South Africa and new members — is reshaping these very foundations. For investors, it signals one thing clearly: it’s time to update the playbook.

Brics+ as a New Global Force

No longer just a symbolic acronym, Brics+ has evolved into a growing alliance that represents nearly half of the world’s population. Its significance lies not only in its size but in its ambition to challenge the Western-led economic and geopolitical order. As the U.S. and China enter into a more open rivalry, Brics+ offers an alternative model — especially attractive to countries in the Global South that have long felt marginalised.

Through its control over vital resources, strategic maritime trade routes, favourable demographics, and growing military capabilities, Brics+ is carving out a role as a formidable economic bloc. It provides China in particular with access to markets that lie beyond the influence of the West, giving Beijing a hedge against sanctions and trade restrictions.

The Investment Shift: From Passive to Thematic

In a world that’s becoming more fractured, investors can no longer rely solely on traditional classifications like “developed” and “emerging” markets. Economic growth is no longer tethered to geography but rather to key themes:

• Technology: Especially AI and chip production

• Energy: Green, nuclear and fossil fuels

• Commodities: Rare earths, critical minerals

• Productivity: Driven by robotics, automation and data

Brics+ countries often possess a natural edge in these areas, thanks to rich resource endowments and growing strategic coordination. China, for instance, controls a significant portion of the minerals needed for the green transition. As these growth drivers intensify, the nations that can best leverage them may leap ahead economically.

Why Passive Strategies No Longer Cut It

For investors, this shift means thematic investing is no longer optional — it’s essential. Passive strategies that simply follow index weightings may overlook emerging pockets of opportunity or risk. Thematic investing requires a deeper understanding of how technology, resources and policy intersect across different regions, sectors and asset classes.

In this new world, liquidity is lower, policy risk is higher, and volatility is the norm. The role of private markets is expanding, as companies seek to shield intellectual property or avoid regulatory hurdles associated with public listings. Investors will need to use a combination of public and private securities to access full market potential.

Trump’s Industrial Strategy and the Brics+ Response

Former President Donald Trump’s economic playbook — focused on reshoring industrial capabilities and reducing U.S. reliance on China — reflects these shifting realities. His administration’s tariffs and interest in strategic territories like Greenland and the Panama Canal suggest a broader competition for economic resilience and security.

The Brics+ response? Increasing economic collaboration and positioning themselves as an indispensable hub for raw materials, technological components, and growth markets.

A New Investment Era

As the global order polarises and supply chains splinter, investors must shift toward active, forward-thinking strategies. The rise of Brics+ demands that we break free from legacy thinking and embrace a more thematic, multi-asset, and geopolitical-aware investment mindset.

The global economy is not what it was — and neither should your investment strategy be.

{Source: The Business Times}

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