Baring Emerging Europe Plc

Emerging Markets

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, 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
Baring Emerging Europe Plc
Baring Asset Management Inc.
Closed Ended Investment Company
European Emerging Markets
1.5 %
Risk Rating
3 Year Sharpe
3 Year Alpha
3.9 %
MSCI EM Europe 10/40 NR EUR
Fund Size
£ 106.33 million
Discount Premium
The investment objective is to achieve long-term capital growth, principally through investment in securities listed on or traded on an Emerging European securities market or in securities of companies listed or traded elsewhere, whose revenues and/or profits are, or are expected to be, derived from activities in Emerging Europe.
Holding %
Sberbank of Russia PJSC 10.55 %
Gazprom PJSC ADR 10.02 %
PJSC Lukoil ADR 8.77 %
Powszechny Zaklad Ubezpieczen SA 4.93 %
X5 Retail Group NV GDR 4.86 %
KGHM Polska Miedz SA 3.81 % Group Ltd GDR 3.03 %
Komercni Banka AS 2.76 %
Santander Bank Polska SA 2.62 %
Region %
Europe - Emerging 79.73 %
Europe - ex Euro 8.36 %
Sector %
Financial Services 35.90 %
Energy 31.39 %
Consumer Defensive 7.42 %
Technology 7.40 %
Basic materials 6.52 %
Baring Asset Management Inc.
02110, Boston, United States
Legal Structure
Closed Ended Investment Company


Adnan El-Araby
Joined 10/01/2018
Maria Szczesna
Joined 10/01/2018
Matthias Siller
Joined 12/01/2008

Data provided by Morningstar.

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