Utilities, Precious Metals, Real Estate, Canada, France are among the worst

You will be able to download all slides in power point for this report
and all data is available excel



We think that the inerest will return to emerging markets and commodities assets classes after profit taking in May Turkey lost a lot of its out-performance since the beginning of the year on the back of profit taking and political turbulence. It is high beta and it looks fragile if profit on the emerging markets continues which we think not. South Africa has been under pressure in current profit taking. Yet it looks like ZAR has been quite oversold on possible downgrade rumors but the interest to SA assets is now returning. Russia has been more or less safe maintaining its outperforming status. The profit taking in May has been very modest and interest in Russia is likely to pick up as oil price moves to new average levels. Korean stocks fail to excite this year. The market is overall flat while stock picking is in action. India was again highlighted in May as a favored destination for investor looking for big ideas. Yet overall performance of India assets is lack laster. It might change as interest to India is returning after almost 20 months of calm. China assets are slowly trending lower, as investors are lacking confidence in China investment case or are simply offered better deals in other places on the emerging markets. Asset differentiation and heavy asset picking is in action in this geography. Canada has been a fairly good performer this year and in May especially, matching return of interest to commodities the market out performance could continue. Brazil is in heavy profit taking mode, as political certainty has been used to fix profits in a market that has been the best performing market YTD. But the interest to a battered market is likely to pick up after profit taking dust settles. Australia has been an important contributor to global financial asset performance YTD. World ex Australia is up 0.7% which 10 btps weaker then overall global equities, mathching the interest in commodities this year. We do overall favor commodities exporters vs. importers this year.