Baring Emerging Markets Fund
as of 28/11/2017
Share Class Info
|Share Class||Class A GBP Acc|
|Accumulating / Distributing||Accumulative|
|Share Class Inception Date||23/10/2009|
This fund closed on November 28, 2017. Please contact your advisor with any queries.
Summary fund objective
The objective of the Fund is to maximise total return, consisting of income, capital appreciation and currency gains by investing in emerging market corporate debt securities. The Fund will seek to achieve its investment objective by investing at least 70% of its total assets at any one time in emerging market debt securities issued by companies domiciled in, or exercising the predominant part of their economic activity in emerging markets or listed or traded on an eligible emerging market.
The Fund may gain market and/or economic exposure to emerging market countries through debt securities and currencies either directly and/or indirectly such as through the use of derivatives, exchange traded funds (“ETFs”), exchange traded certificates (“ETCs”) and collective investment schemes. (Please refer to the Prospectus for the full investment objective and policy.)
Glossary of common investment terms
Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance.
This is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management and is by way of information only. Before investing in any product, we recommend that recipients who are not professional investors contact their financial adviser. The Key Investor Information Document (KIID) must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management.
This commentary relates to the month of October 2017- to be read in conjunction with the factsheet.
The Morgan Stanley Capital International (MSCI) Emerging Markets index continued to move higher in October and maintained the trend of outperformance against developed market equities.
Performance in Asia was strong with China reacting positively to the Communist Party Congress and the vision expressed by Xi Jinping. India was the top performer in emerging markets propelled largely by the government’s recapitalisation of capital starved public sector banks. Europe, the Middle East and Africa (EMEA) offered a diverse picture as Russia detracted while South Africa outperformed despite weakness in the Rand, as the market was supported primarily by the strong outperformance of index heavyweight Naspers. In Latin America, Mexico detracted as the Peso weakened due to concerns over potential North American Free Trade Agreement (NAFTA) renegotiations while Brazil and Colombia also declined.
Over the month of October the Baring Emerging Markets Fund was flat against its performance comparator.
Ping An, a Chinese Insurer, contributed positively as the company announced better-than-expected the third quarter (3Q17) results driven by strong profit growth within its life insurance segment and solid results from the property and casualty businesses. Reliance Industries, an Indian oil refiner, performed strongly as the company reported better than expected results driven by resilient refining margins. Naspers, a South African media platform, was another notable contributor reinforced by the performance of its investment in Tencent which continues to grow within its mobile gaming, social media and digital content platforms.
During October the most notable detractors were TSMC, a Taiwanese semiconductor manufacturer, Brilliance China, a Chinese Automobile manufacturer and Sunny Optical, an optical lens designer and manufacturer based in China. These names were amongst some of the funds best performers year to date and have been subject to some profit-taking. Despite the short term underperformance we continue to believe that the outlook remains very positive for all three companies.
During the month the fund initiated a positon in Grupo Financiero Banorte, a Mexican Bank.
The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.