Evelyn Partners managed portfolio service (MPS) team has positioned its highest risk model for the potential of an improved market outlook in Asia and emerging markets, after it initiated a position in the £838.4m Baillie Gifford Emerging Markets Leading Companies.
In its latest rebalance, the MPS has remained underweight to Asia and emerging markets, but the management team said it had taken “tentative steps” for a possible change in fortunes for the sector.
James Burns, lead manager of the Evelyn Partners Active MPS, said: “It is possible that we are nearing a turning point in Asia and emerging markets, but we await evidence of this occurring before making any significant moves here.
“That said, we have taken some profits from BlackRock Emerging Markets Equity Strategies which has outperformed its benchmark by a huge margin over the past three years thanks to the contrarian stance that has been taken by its managers.”
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The Baillie Gifford Emerging Markets Leading Companies fund has been managed by Will Sutcliffe since 2009. He co-manages the strategy alongside Roderick Snell and Sophie Earnshaw, who joined the fund in 2019.
According to FE Fundinfo, the strategy has returned 27.1% over the last five years, placing it among the top quartile of performers in the IA Global Emerging Markets sector over the period.
On the fund, Burns said: “Technology and financials are currently major themes in the portfolio and the two biggest positions are TSMC, Taiwan’s world leading semi-conductor chip manufacturer, and Samsung Electronics, respectively 9.9% and 9.7% of the fund.
“In time, when we have greater conviction in Asia and Emerging Markets, we may well bring this fund into more of the models.”
This article was written for our sister title Portfolio Adviser
