We have recently increased our underweight in Korea to reflect the deterioration in the trade negotiations and Japan’s recent decision to tighten export rules has added further pressure on the Korean won.
As bond yields in Peru continued to fall on low inflation, lower growth forecasts and the expectation of renewed easing by the central bank, we used the opportunity to trim our overweight bond position.
Central European economies have shown remarkable resistance to the slowdown in the Euro area; we maintain our overweight exposure in our high conviction markets including Croatia and Georgia.
Emerging market: These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems. Investments carry a risk of capital loss.
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