Fiera Capital looks to China as 'natural investment' post-pandemic

Avoids countries with existing difficulties

China is the "natural investment" in emerging markets owing to its capacity to bounce back from the economic impact of the coronavirus pandemic, while allocations to countries that were already struggling before the crisis are best avoided, according to European CIO and senior portfolio manager at Fiera Capital Dominic Bokor Ingram.

Bokor Ingram, who is responsible for overseeing the firm's emerging markets mandates, said the firm is analysing "how much economic destruction" EM economies will see and those most capable of "getting their economy going again" when the virus is contained, which has led to a preference for Asian equities. Is Vietnam ready to fill China's supply chain gaps? From the start of the year to April, the regional allocation to Pacific Basin equities has grown from 54.1% to 65.1% of Fiera's Magna Emerging Markets strategy, according to FE fundinfo. He explained: "In Asia, there was the fis...