How betting on democracies beat 97% of emerging-market funds

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An ESG fund manager that shuns investing in nations classified as unfree is having one of his best years after the strategy helped him dodge meltdowns in a number of emerging markets. Moneyweb Markets Stocks

An ESG fund manager that shuns investing in nations classified as unfree is having one of his best years after the strategy helped him dodge meltdowns in a number of emerging markets. Thierry Larose, Zurich-based manager of Vontobel’s $330 million sustainable emerging-market local-currency bond fund, tracks rankings from Washington-based Freedom House and blacklists any countries ranked “not free.

Egypt, where it says meaningful opposition is virtually nonexistent, lost 18%, according to data compiled by Bloomberg. On the other hand, three of the top five performers this year — Colombia, Brazil and Poland — are rated as “free,” while two others — Hungary and Mexico, were ranked “partly free” by the think tank’s annual Freedom in the World report.

 

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