01/02/2011
Barings repositions its emerging markets portfolios
p { margin-bottom: 0.08in; } James Syme, head of global emerging markets, has announced that Barings has repositioned its emerging markets strategies for the short to mid-term, to focus more on companies, particularly in South Korea, which are benefiting from global growth. Bets on household retail consumption is beginning to be integrated into the share prices on several markets.Currently, the portfolio includes South Korean exporters of refined materials, naval shipyards, automobile and technology manufacturers, Indian IT service providers and Taiwan consumer electronics companies. Barings is underweight on energy, but overweight on oil; in the materials sector, the British manager has a bias for bulk metals such as iron and nickel, as well as gold.Barings also says the strength of emerging economies represents a supporting factor for the currencies of these countries, which increases local purchasing power.Inflation remains a cause for concern, particularly in Indonesia and India. Returns on equities in these markets has been high, but valuations may be attractive elsewhere, particularly in Russia and South Korea.
