Barings sees less risk in emerging market equities

Kos, who co-manages the fund alongside Percival Stanion explains the catalyst for this change was strong economic data from the US and signs that Europe is pulling out of its sovereign debt malaise, supported by positive action from the European Central Bank. A highly volatile summer and autumn period presented a scenario of relatively hostile conditions for risk assets as a whole, according to Kos. This was driven by the Eurozone sovereign debt crisis and also fears of a hard landing in China.  "In this respect, we viewed emerging market assets as highly correlated and we needed to t...