Forey said he was progressively spending cash to make the most of opportunities in the market, particularly in financials but also in industrials.
Commenting on global economic conditions, he said while the rise in global risk would directly affect the average price in the short term, long-term indicators suggested a different, more positive story in emerging markets.
“We see a continuing increase in household and discretionary incomes in those countries and this will continue to drive growth,” Forey said, adding the share of global profits would continue to rise in emerging market countries.
“This reflects what we see as a long-term shift in weight,” he said. “We expect it to tip further towards emerging markets.”
Forey believes investors will continue to chase the benchmark, moving away from the problems in the developed world, and that this would continue to give investors buying opportunities in emerging markets.
However, some markets were richer pickings than others, according to Forey.
Domestic Brazil, where Forey was “underexposed and skeptical”, was still “staggeringly expensive,” he said.
“One of the problems is a strong currency, and the country has seen a mass normalisation trend, increasing profits and valuations. They need focus on a disinflation model,” said Forey.
He believed investors could still find fair value in China, which he expected to continue growing at reduced rates. India was also a compelling market which still had a “great long-term story”.
Lastly, Forey said he continued to look towards South Africa, which he said offered “high quality opportunities”.
