Investors desert BRIC funds due to poor returns, weak economic growth

martes 10 de noviembre de 2015 13:12 GYT
 

* BRIC funds' total assets a quarter of 2010 levels

* Drop forces managers to close funds or rethink strategy

* Brazil, Russia, China equity markets underperform

* India does better but government struggling to reform

* BRIC shares more volatile than broader emerging stocks

By Sujata Rao and Saikat Chatterjee

LONDON/HONG KONG, Nov 10 (Reuters) - Specialist funds dedicated to the once-vaunted BRIC quartet of emerging markets face a bleak future, as many investors have pulled out due to years of collective underperformance by the bourses of Brazil, Russia, India and China.

The sharp decline in assets is forcing managers to close BRIC funds or radically rethink their strategies for the four largest emerging economies. These include Goldman Sachs, whose then chief economist Jim O'Neill coined the acronym in 2001.

The death knell for the sector may now have sounded as Goldman's asset management arm has rolled its BRIC fund into a broader emerging market product, telling the U.S. Securities and Exchange Commission it did not foresee "significant asset growth" for the fund.   Continuación...