Managers seek to buy into stocks with emerging markets exposure

Schroders, Fidelity and Barings are all showing a marked preference for peripheral European markets over core . One reason is the more impressive GDP growth rate seen in the likes of Skandinavia, Ireland and Eastern Europe. Richard Skelt, head of portfolio strategies at Fidelity, points out GDP growth in Western Europe is likely to come in at 1.9% for 2006, against 5.3% in the east. "While GDP growth rates in Europe are likely to remain lacklustre, Eastern Europe is one of the few regions where the rate of economic growth is expected to accelerate in 2006," he says. His colleague Al...