The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Emerging markets: Fund managers do battle in commodity minefield

In the second part of Euromoney’s emerging market equity fund manager profiles, Chloe Hayward talks to seven managers and hears what history has taught them and how they plan to find their way through the minefield of commodity-linked stock markets, notably in eastern Europe.

Part one: Emerging markets: Fund stars ride out the storm
Profiles of the leading emerging markets investors

EVEN THOUGH SHARE prices have collapsed and there are abundant opportunities throughout the emerging world, asset manager Aberdeen is wary of valuation traps. "The quality of the business is the priority, valuations are secondary," says Mark Gordon-James, investment manager on Aberdeen’s emerging market equity team.

Aberdeen’s careful approach was rewarded in March. Hargreaves Lansdown dropped Mark Mobius’s Templeton global emerging market fund from its Wealth 150 list. Instead, Mark Dampier, head of research at Hargreaves, said that Aberdeen’s emerging market fund "has the potential to deliver superior returns".

Valuation play or Armageddon

"Russia is very high risk and companies are high risk – we wouldn’t hold those businesses at any valuation," says Gordon-James.

In contrast to the other Bric countries (Brazil, Russia, India, China), Russian corporates have been off many fund managers’ radar screens. There is still concern about Russia’s economic outlook and doubt that its leading banks and companies will be able to roll over their debts this year. The country’s public and private institutions need to refinance $117.1 billion in the bond and loan markets this year, according to Deutsche Bank.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree