EM managers rejecting benchmark weightings

clock

Emerging markets managers are deviating from benchmark weightings, arguing they miss out areas of greatest potential economic growth and investment opportunities.

Their warning comes as EM equities fund inflows last week hit a 10-week high. The sector absorbed about $7bn this year. Fiona Manning, investment manager on Aberdeen Asset Management’s emerging markets team, says: “The benchmarks are neither great guidance in terms of the quality of companies nor the weight you should hold. “Petrobras for example is 18% of the Brazil index. Holding benchmark weight is quite significant company risk.” Most Aberdeen clients limit Manning’s team to 10% in single stocks. Fancisco Alzuru, manager of Natixis Asset Management’s $71m Hansberger Emerging La...

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

Artemis' Altaf on a decade in EMs, SmartGARP's evolution and why it is dangerous to avoid China

Artemis' Altaf on a decade in EMs, SmartGARP's evolution and why it is dangerous to avoid China

'There is no perfect model for the world and the equity market'

Katrina Lloyd
clock 22 July 2025 • 11 min read
TEMIT's Chetan Sehgal: Finding value in India

TEMIT's Chetan Sehgal: Finding value in India

'Robust growth prospects'

Chetan Sehgal
clock 15 July 2025 • 3 min read
GIB AM's Kunal Desai: Emerging markets thrive as dollar dominance declines

GIB AM's Kunal Desai: Emerging markets thrive as dollar dominance declines

'Damage is done'

Kunal Desai
clock 09 July 2025 • 2 min read
Trustpilot