EUROPE - Baring Asset Management's Emerging Europe Fund has sold its entire portfolio position in Turkey following the war in Iraq.
Turkey’s decision to deny the US access to Iraq via its airspace and the subsequent loss of a US aid package dashed the previously positive economic outlook, the company said.
BAM believes Turkey’s debt mountain will be unsustainable in the long-term and that its government is not fully committed to the IMF programme.
The fund is now overweight in Russia, Estonia, Hungary and Croatia. It is underweight in Slovenia, Czech Republic, Slovakia, Turkey and Poland.
BAM’s emerging Europe fund manager Klaus Bockstaller said: “An ability to respond quickly to changing economic and geopolitical issues in this region by actively managing the fund and adjusting asset allocations remains the critical factor to outperforming the benchmark.
“One sector we are positive towards is pharmaceuticals where despite long-term opportunities for the largest remaining independent companies in central Europe, valuations remain attractive relative to global peers.”
The Next Generation Pensions Committee is on a mission to promote and encourage younger voices in the industry. Kim Kaveh looks at its key objectives
This week's top stories included an analysis finding the cost of equalising guaranteed minimum pensions in schemes could hit FTSE 100 profits by up to £15bn.
Employers whose dividend to deficit recovery contribution (DRCs) ratios fall outside the "normal range" should expect to see higher regulatory scrutiny, although no fixed ratio will be set.
Investment consultants and fiduciary managers should expect a final decision on the investigation into the market to be published by the end of the year, the competition watchdog says.