Goldman Sachs analyst Jim O'Neill coined BRIC acronym in his analytical paper Building Better Global Economic BRICs (http://www.goldmansachs.com/our-thinking/archive/archive-pdfs/build-better-brics.pdf) November 30, 2001. Back then the paper identified the trend that the economic growth, wealth and economical power are moving from developed to emerging countries.
In the last several years (2013-2015) it became clear that the growth in major emerging markets is slowing down or stopping completely. As a result EM share prices that assumed high growth rates should fall or stop their growth are least.
Seprember 17 2015 Goldman Sachs announced the merger of its BRIC fund with Emerging Markets Equity Fund, effectively closing BRIC fund. The explanation was: GSAMI does not expect the Acquired Fund to experience significant asset growth in the foreseeable future.
http://www.bloomberg.com/news/articles/2015-11-08/goldman-s-bric-era-ends-as-fund-closes-after-years-of-losses
http://www.sec.gov/Archives/edgar/data/822977/000119312515322541/d38785d485bpos.htm
On my view this is a move from views about no equity growth potential in BRIC to actions based on these views. Does Goldman Sachs decision confirm that investments into BRIC equities in general are not appealing in the foreseeable future?
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