But investors must also consider the macro-economics of the region, which is obviously far more risky than mainstream European markets. Once a country has that, it can undergo vital structural reforms. We like countries that are switching towards a privatised economy rather than being state run. We look for a good privatisation programme and an independent central bank. Then we look for financial convergence.
Countries converging with Europe in relation to interest rates and exchange rates are attractive.
We saw this a few years ago with Portugal, and Greece is now undergoing this process. These economic considerations have a heavy impact on companies and sectors. In Turkey, for example, there is continued improvement in the political stability of the country, which is creating a lot of structural reforms in the economy. However, the Government's aim to lower interest rates is hitting the banking sector. It will be a bumpy ride, but there will be significant returns there.