European Wealth makes play into frontier markets

European Wealth has added to its exposure in emerging and frontier markets resisting the current investor temptation to “sit on your hands” and weather any upcoming storms.

European Wealth makes play into frontier markets


Richard Stammers, investment strategist at the firm, confirmed the portfolio shift would take place this week using profits taken from global equity exposure.

He said it was a sign they were “very much not sitting on our hands” despite fears that investors had become far too complacent in the current period of low volatility.

The favoured funds were Charlemagne Capital’s Magna New Frontiers Fund as well as the more income-focused Emerging Markets Dividend Fund.

While there is a “niggling feeling that things might be a bit too complacent”, Stammers said clients expect them to keep looking for the right opportunities.

European Wealth said there was a temptation to do nothing and wait and see the outcome of the UK general election and how geopolitical events develop was tempting.

“But it is not the right thing to do and we are continuing our programme of adding to our emerging markets positions,” Stammers said.

“This might seem at odds with our fears that things are too complacent – surely that implies there may be a pullback and a lower entry point? 

“That is, of course, possible – but micro timing markets is foolhardy and we remain focussed on strong markets and longer term fundamentals rather than short term guesses.”



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