Results analysis from Kepler Trust Intelligence
Source: RNS
Barings Emerging EMEA Opportunities (BEMO)
09/12/2021
Results analysis from Kepler Trust Intelligence
BEMO has reported excellent results for the year ending 30 September 2021. Absolute returns were high, with a 36.6% NAV total return for the period. On a relative basis this represents significant outperformance of the benchmark, which returned 33.3%. The shares gained 39.7% on a total return basis as the discount narrowed over the period. The mainstream emerging markets index returned just 13.3%.
The vast majority of the period reflects the performance of the broadened strategy, which invests across the EMEA region rather than focusing on Emerging Europe - the strategy changed in November 2020, before which the trust was named Baring Emerging Europe.
Kepler View
The 2021 financial year was an excellent one for BEMO's shareholders. The reflationary rally following the emergence of vaccines was excellent for the trust's region, particularly the banks, energy and materials sectors. We think this mix of sectors is a potentially valuable one and an interesting hedge for a more inflationary environment such as the one we are in. Additionally, BEMO offers access to growth opportunities in consumer and technology-related sectors which benefit from the large and growing middle classes across the region.
Despite the strong results this year, BEMO still trades on a considerable discount of 11.6% (as of 07/12/2021). We think this could be an opportunity for long-term investors. Of course, this is a region with many risks, and the resurgence of the pandemic could see various countries in it - like South Africa - hit hard. However, the mix of countries should provide some protection against this, while the portfolio has a high potential sensitivity to any eventual recovery from an omicron wave. In the long run the exposure to global themes like the shift to renewables and the rising middle classes in the region offer the possibility of excellent returns.
CLICK HERE TO READ THE FULL REPORT
Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.
Important information
This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.
Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.
Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.
The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.
The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.
This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771.
Reach is a non-regulatory news service. By using this service an issuer is confirming that the information contained within this announcement is of a non-regulatory nature. Reach announcements are identified with an orange label and the word “Reach†in the source column of the News Explorer pages of London Stock Exchange’s website so that they are distinguished from the RNS UK regulatory service. Other vendors subscribing for Reach press releases may use a different method to distinguish Reach announcements from UK regulatory news.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
