JPM's Forey turns to the ‘election trade'

J.P. Morgan Asset Management's Austin Forey is taking overweights in emerging market countries holding elections this year, in the view their shares could rally after a dismal start to the year.

Forey’s three biggest geographical overweights are India, South Africa, and Brazil, all of which have upcoming elections this year.   The lead manager of the £733m J.P. Morgan Emerging Markets investment trust and co-manager of the £1.2bn Emerging Markets fund said India’s last set of elections in 2009 provided a good comparison. The world’s largest democracy has already seen striking gains on hopes Hindu nationalist Narendra Modi will be elected next month. The Bombay Sensex index is up 12% in the last month in what analysts have dubbed the “saffron rally”, a reference to the colours...