Baring Emerging Europe Plc
New for 2019. Looks for ‘Garp’ in emerging Europe
Baring Emerging Europe was highly commended in the Best Emerging Markets Trust category of Money Observer’s investment trust awards for the second year running in 2018. Its three-year performance vastly outstrips most other emerging markets trusts as well as benchmark indices. For this reason, and its solid 4.9% yield, it has taken a well-earned place in our Rated Funds.
Matthias Siller has run the trust since 2008 with Adnan El-Araby and Maria Szczesna being named as managers in 2018.
They remain convinced about the merits of investing in emerging Europe, which offers growth prospects at a reasonable price. The managers invest in small and medium-sized companies and follow what is known as a ‘Garp’ strategy – buying growth stocks at the right price, rather than simply buying cheap stocks, so the fund will tend to underperform in momentum markets, when stock fundamentals are less important.
Russia accounted for more than 60% of portfolio at the end of 2018, followed by Poland at 18.5% and Turkey at 10%. Russia was one of the strong- est-performing markets of 2018, delivering returns of around 20%, while Turkey was one of the worst, losing more than 30%. At an index level, Polish stocks also lost money, but less so. Political and currency risk underline the need for careful stock picking.
The managers own Russia’s Sberbank and dominant social network Mail.ru, and have been taking advantage of the depressed valuations in Turkey by picking up companies with strong balance sheets such as mobile telecoms market leader Turkcell.
Narrative and ratings content all as of January 2019.See all Money Observer rated funds
|PJSC Lukoil ADR||11.16 %|
|NOVATEK PJSC GDR||8.59 %|
|Sberbank of Russia PJSC||8.29 %|
|Gazprom PJSC ADR||7.03 %|
|Powszechny Zaklad Ubezpieczen SA||4.55 %|
|Turkcell Iletisim Hizmetleri AS||4.44 %|
|X5 Retail Group NV GDR||4.31 %|
|PKO Bank Polski SA||3.97 %|
|KGHM Polska Miedz SA||3.77 %|
|Mail.ru Group Ltd GDR||3.23 %|
|Europe - Emerging||87.90 %|
|Financial Services||32.69 %|
|Consumer Defensive||8.51 %|
|Basic materials||6.87 %|
|Communication Services||5.40 %|
Data provided by Morningstar.
The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.
This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.
You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.