Kooyman boosts holding in EM banking stocks

Sanlam Investment Management's Kokkie Kooyman has boosted exposure to emerging market banks in the Global Financial fund from 60% last September to 64%.

In September 2008 the fund had 50% EM exposure and Kooyman is positive on EM banks under state ownership. He says: “In India government-owned banks, taking deposits and lending out have done better than private banks.” Sanlam’s fund has 21% in India. “In the crisis, all the emerging markets state-owned banks we own were low risk. They were government guaranteed so there was no worry there would be a run on profits. Private sector banks are too aggressive and always need capital.” The Bank of India, he says, “constantly grew its NAV over the past 15 years by solid banking practices....