Baring Asset Management Increases Exposure to Emerging Asia.

BOSTON -- Baring Asset Management (BAM), the global institutional investment management firm, has increased its exposure to emerging Asian economies, including Korea, Taiwan, Indonesia, and Malaysia. The increased Asian weightings come at the expense of reductions in exposure to more defensive UK-based assets.

"In 2006, we feel that significant demand from their own domestic consumers will begin to become a factor in Asian markets," commented C. Hayes Miller, CFA, a global equity portfolio manager and a member of the Strategic Policy Group. "Although export demand from the US and EU may slacken somewhat, we feel that the increase in intra-Asian demand will be enough to propel Asian firms to strong performance next year. Furthermore, we see a strong environment for corporate spending on productivity enhancing technologies and equipment, which suits the technology sector in Asia."

Although Baring is maintaining its current overweight position in developed Asia ex- Japan (Hong Kong, Singapore, Australia, and New Zealand), it feels that the market conditions of emerging countries (including South Korea, which accounts for 18% of the overall emerging index) are positioned to offer greater returns.

For sector allocations, Baring continues to overweight materials and in particular energy, despite its two-year run up in price. Says Miller, "At present the global energy sector is showing a 24% return on equity, which is an historic high and gives us confidence that the sector has farther to go. Recent weakness is healthy consolidation."

About Baring Asset Management

Baring Asset Management (BAM) is a global investment management firm that manages approximately $35 billion on behalf of governments, institutions, charities, private clients and mutual fund investors located around the world.

Within North America, BAM provides asset management services to institutional investors, offering them a range of equity and fixed income products in both domestic and international markets from their offices in Boston, San Francisco and Toronto.

BAM follows a Growth at a Reasonable Price (GARP) equity investment strategy. Its approach focuses on identifying favourable earnings surprise and valuation characteristics through fundamental research, and it seeks companies, sectors and markets whose attractive growth prospects are not fully reflected in their prices.

Baring Asset Management is part of the MassMutual Financial Group, a global, diversified financial services organization. Massachusetts Mutual Life Insurance Company (MassMutual) is one of the largest life insurance businesses in the USA. More information about Baring Asset Management can be found at www.baring-asset-us.com.