Emerging market fund managers have come across a new acronym to excite them now that the deepening recessions in the commodity-dependent Brazil and Russia have taken the shine off the BRICS grouping – TICKS, which groups China and India together with the tech-centric economies of Taiwan and South Korea.
“BRIC is not the engine of emerging market growth it was. There is a new order of things,” says Steven Holden, founder of Copley Fund Research, which tracks 120 emerging market (EM) equity funds with combined assets of $230bn. “Tech is just rampant and the consumer is what you are investing in EMs now. I don’t think many people are aware of the new EM story as much as they should be. They think of Brazil, Russia, materials, big energy companies. That has changed hugely.”
BRICS losing their shine with emergence of tech-heavy TICKs
Source: FT