According to Baring Asset Management (BAM), investors should not be put off increasing their exposure to the Eastern European markets, despite the recent dip in investorsâ assets, because the long-term prospects for the region remain good.
Ghadir Abu Leil-Cooper, investment manager of the Baring Eastern Europe Fund, said that selling off after years growth was to be expected, and its significance shouldn't be overestimated.
"Following the rally of the past three years it is natural to expect a degree of profit-taking, however the fundamentals remain very supportive for the region and we believe that any more volatility may actually provide investors with further opportunities to increase exposure to these markets," he said.
He added that Market forces in the US and Japan were to blame for the drop in investorsâ assets, but that this would be unlikely to have a long-term impact on the Eastern Europe markets.
Limitations on supply of commodities and a robust demand from countries such as China are also expected to provide for strong commodity prices in the region.
Yesterday, the investment bank Citigroup also reported strong growth in its Eastern European investments, supporting the view that the region still has much to offer investors.