ING Investment Management sees investment opportunities in the Emerging European sustainable growth story.
Griffiths points to Russia as a country that stands out despite this sensitivity, “due to its relatively low exposure to the problems currently experienced in the Eurozone.
“Valuations in Russia are attractive and its macroeconomic performance continues to show strength.”
He continues: “In Turkey, equities continue to be driven by both external and domestic developments, with the Eurozone dominating the external arena while inflation and monetary policy dominate domestically.
“Markets across Central Europe, such as Poland and Hungary, have become increasingly intertwined with Western Europe and developments in the Eurozone are likely to have a greater impact on these countries than elsewhere.”
ING IM notes that equity valuations across the region remain attractive in comparison to global and emerging market peers, although markets remain below the pre-crisis levels when compared to global emerging markets.
Other asset managers are also bullish on the region. For example, RBC Wealth Management hired two directors to its London-based Eastern Europe desk last week.
Tanya Blazhko and Nathalie Gorshkova have been appointed to expand RBC Wealth Management’s reach into the Eastern European markets, including the Commonwealth of Independent States region.
“We established the Eastern Europe desk almost a year ago in order to channel our expertise and suite of solutions for high net worth individuals in those markets. [The new] appointments are proof of a commitment to deepening our coverage of both developed and emerging markets,” said Mike Moodie, head of RBC Wealth Management-UK.