The developing economies have slowed down over the past year, but investors shouldn’t dismiss them just yet. Reforms and policy changes could help bolster some emerging market stocks and exchange traded funds.

Kristoffer Stensrud, the founder of Norway-based Skagen AS, which has outperformed funds run by Goldman Sachs and JPMorgan Chase over the past decade, believes that a series of elections in some emerging countries this year could led to economic reforms and stability, reports Ilana Friedman-Schroit for Bloomberg. [No One Likes Emerging Markets]

“There’s an election cycle starting this January in Egypt, India, Indonesia, Thailand and South Africa,” Stensrud said in the article. “South Africa is interesting because of the social unrest over the past year. They may be more committed to statutory reforms and we might see a change of policy or a change in government.”

Developing economies can still generate above-average returns as a growing middle class demands a higher standard of living. For instance, the rise in discretionary spending should help boost car sales.

“Cars in emerging markets are very interesting because penetration is low, demand is very high and affordability is rising sharply,” Stensrud added. “This gives these companies fantastic possibilities of growth.”