Top Emerging Equities Fund Shuns China's `Casino' Stock Market
- Northcape sees money flowing to EM, but China is a worry
- Fund managers buying South Korea, Indonesia, Brazil equities
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Emerging-market equities have seen renewed investor enthusiasm, but for one Australian firm, the world’s best-performing market is not the place to go.
While the Shanghai Composite Index has rallied 24 percent this year, Northcape Capital Ltd. has reduced its exposure to mainland and offshore-traded shares. Less than 5 percent of its emerging-market assets are in Chinese equities now, compared with “significantly more” last year, said Ross Cameron, a fund manager at the firm.