Straight to the Core
In this edition of Straight to the Core, we consider how market tensions are increasing on the back of rising geopolitical risks as pro-Russian forces take over the Crimea region of the Ukraine. While only a handful of Eastern European emerging markets (EMs) have significant trade exposure to Russia and the Ukraine, EM-wide geopolitical vulnerability remains high in relation to such a potential risk-off event.
We remain positive on resource companies and their respective exposures to China, however, as can be seen in the portfolio holdings of the Momentum Top 25 Fund.
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