Newton's Global Opps managers cut EM exposure to zero on Asia debt fears

Valuation do not provide margin for error on downside

Daniel Flynn
clock • 2 min read

The managers of the £312m Newton Global Opportunities fund have removed all emerging market exposure, after briefly returning to the region, on the view valuations are not sufficiently cheap to provide enough margin for error on the downside.

Raj Shant (pictured), alternate manager on the fund to Robert Hay, said areas of Asia are yet to complete their credit cycle, and are taking on far too much debt, despite the region offering the most attractive secular growth opportunities globally. "We are cognisant that emerging markets have underperformed developed markets for nearly four years now so there should be some good risk/reward profiles," he said. "However, that time is not yet. If there is another leg to the EM credit crisis then we want to be ready to benefit from that, then sit back and let markets do the work at the ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

Client demand into region rising

Hugh Gimber
clock 26 March 2024 • 4 min read
Four Graphs explaining India

Four Graphs explaining India

Four experts write

Investment Week
clock 12 February 2024 • 4 min read
JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

Early adaption is key

Omar Negyal
clock 11 January 2024 • 2 min read
Trustpilot