ABN Amro’s wealth unit Bank increases allocation to EM equities

ABN Amro Private Banking expects that emerging markets will increase 4.5% this year.

Additionally, the bank’s wealth-management unit is also purchasing US real estate investment trusts and global food companies including Nestle SA and Starbucks Corp.

“It’s a cyclical play. We’re ready to increase risk-on momentum. We’ve seen a lot of market stabilization in emerging-market stocks since the beginning of the year, when it was pretty volatile,” the publication quoted Duret as saying.

“We’re at the beginning of a manufacturing uplift that will benefit China and the surrounding regions,” he added.

For the third quarter of 2014, ABN Amro Private Banking has increased its allocation to equities to 43% from 40% compared to the previous three months.

In addition, It has also increased its property exposure to 8% from 3% and reducing cash holdings to 5% from 13%.

Currently, ABN Amro Private Banking holds 37% in bonds, 5% in hedge funds and 2% in commodities.

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