LGIM's Onuekwusi eyes undervalued EM exposure

EM exposure at lowest level

LGIM multi-asset manager Justin Onuekwusi is actively searching for value in emerging markets after reducing his exposure to its lowest level since the inception of the fund range.

The manager cut his allocation to emerging market equities in December, bringing it down to its lowest level since the funds launched in August 2013, reducing the allocation across portfolios by more than half or removing it altogether. In June 2015, all his five multi-index funds held some exposure to emerging markets, with the highest risk Multi-Index 7 (MI7) fund holding the biggest allocation to the asset class at 16%. However, he has cut EMs in this fund to just 5%, while the EM allocation in MI6 has been reduced from 11.5% to 4%, and from 5% to 0.5% in MI5. His two most cautious...