Unlike many others who are investing in the emerging markets, Investment Week reports, that Guy de Blonay, has turned over approximately 20% of the £900m Jupiter Financial Opportunities fund, to the developed markets. De Blonary sold major investments in Chinese banks and bought into the US, as well as increasing the exposure throughout continental Europe, including Sweden and Norway. Currently, the fund is now comprised of Europe, at 35% of the fund, and 6% in Asia, compared to November 2010, when the fund was comprised of almost 40% in the Asian markets, and the US made up 4%.
De Blonay, is in lead management of the £897m fund from Philip Gibbs. From November 2010 until now, he has sold holdings in Chinese banks, including Bank of China, Industrial & Commercial Bank of China, and China Construction Bank, and bought into US stocks including high street bank Wells Fargo, and investment banks Goldman Sachs and JPMorgan Chase.
De Blonay told Investment Week, "We have reduced the Far East, particularly China, and replaced them with the HSBCs and J.P. Morgans of this world," de Blonay says. "We wanted to reduce the emerging market presence because we wanted to reallocate to developed markets in low inflation environments, and the US was very much one recovering, with low inflation. Chinese banks were about 20% of the fund and that has gone directly into Americans stocks like JPM, Citigroup, Wells Fargo and Goldmans."
He continued by adding, "There is a struggle to contain growth in emerging markets, and Standard Chartered has 90% of its revenues from these markets, and we realised costs were going up," he says.
Morevoer, De Blonay also menetioned to Investment Week, that he believes financials could rerate as much as 20% over the next 12 months, and will drive the next leg of the bull market.
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