Consumer Staples

Report by Copley Fund Research

After a multi-year decline in investment EM Tobacco stocks are turning a corner - Steven Copley notes that no other industry group is so underowned vs. its own history whilst also capturing positive rotation among active EM fund managers. Fund level activity between 30th Apr 2022 and 28th Feb 2023 highlights the widespread nature of the allocation shift. All Style groups saw investment levels rise, with 16 funds opening exposure to Tobacco vs. 1 closing over the period. GQG Partners EM Equity, Virtus EM Opportunity and BNY Mellon EM Income were among the larger buyers. ITC and KT&G dominate the holdings picture on a stock level, owned by 14.8% and 7.8% of managers, respectively.