Aberdeen Overweight Russia, Brazil Within EM; Sells Turkish Lira
(Bloomberg) -- Aberdeen Asset Management prefers the currencies and bonds of Russia and Brazil among emerging-market countries, and also favors Indonesian assets, portfolio manager Viktor Szabo says in a phone interview.
- Fund has also been adding long MXN positions recently as fundamentals and central bank are supportive of the currency
- Aberdeen went short TRY following Cetinkaya’s appointment as Turkish central bank governor after Basci
- Keeps short TRY positions and has a neutral stance on rates as central bank expected to narrow interest-rate corridor
- Turkish CPI and current-account dynamics are problems that haven’t been properly addressed; inflation remains far from the central bank’s target
- Aberdeen is short on South African rates while keeping a neutral stance on ZAR; political landscape is negative for South African assets
- Fund remains long on risk, sees reversal of outflows continuing to be the main driver supporting EM assets
- FOMC and BOJ rate decisions marginally positive for EM; Fed is expected to stay hold rates this year and, if anything, may opt for one hike
- Doesn’t see China as a potential threat for EM
- NOTE: Aberdeen Asset Management had AUM of GBP290.5b as of Dec. 2015, according to firm’s website
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HALISTER1Source: BFW (Bloomberg First Word)
Tickers ADN LN (Aberdeen Asset Management PLC)
People Viktor Szabo (Aberdeen Asset Management PLC)
Murat Cetinkaya (Turkiye Cumhuriyeti Merkez Bankasi AS)
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