Renaissance manager keen on Russia and Turkey
Mon Jul 16, 2012
The clear distinctions between emerging and developed
markets are becoming increasingly redundant, according to
Robert Holmes from Renaissance Asset Management.
The possibility that Greece could return to emerging market
status, according to MSCI classifications, is an indication
that the definitions have become increasing complex, says the
portfolio manager for Renaissance Eastern European Allocation
He explains: "The differences between emerging and developed
markets used to be much clearer especially in the 1990s and
related more to simple metrics such as GDP per capita.
"Having this simplistic binary definition of emerging and
developing markets has become increasingly redundant. But I
wouldn’t say the markets are converging.
"If you look at CDS spreads, which is an indicator of
sovereign default probabilities, many emerging market spreads
have decreased whilst developed markets have increased.
"For example, Poland, Russia and Turkey spreads are now not
only much lower than the European periphery but are also...
ISSN: 2151-1845 / CDC10004H
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