These countries figure only lightly in the broad emerging market indices and funds, yet have high growth potential with idiosyncratic drivers that could improve risk-adjusted returns on many portfolios.

Commenting on BEMO’s performance and investment remit, Kepler analyst Thomas McMahon, CFA said: “BEMO has delivered a strong year of performance, with contributions coming from stock picks in Turkey, Saudi Arabia, and among Eastern European banks. Matthias and Adnan aim to offer broad exposure to the varied growth drivers in the region whilst adding alpha through stock selection rather than major macro calls.

“After a strong year for developed market equities, thoughts are likely turning to consider where is next. BEMO offers exposure to a number of growth trends which are not directly correlated to U.S. interest rates, developed world inflation, or China’s GDP growth, the key factors driving markets over the past year, and as such we think offers an interesting diversification opportunity.”

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