From a strategy perspective, CE3 equities are relatively well positioned in an EM context. Interms of monetary policy, a combination of generally dovish central banks in the developedmarkets (especially the Fed and ECB) and their more hawkish EM counterparts is EM equityfriendly. CE3 is increasingly in the more hawkish camp – with Poland, where the central bankhad been dragging its heels, the surprise recent entrant to the monetary tightening club (albeitwith reluctance). Recent and ongoing discord in the Poland-EU relationship is unlikely to createmeaningful negative market traction. Among the CE3 countries, bottom-up, we find thestrongest opportunities in Hungary, but, top-down, we see the largest scope for surprise in thePolish equity market. We have a positive rating on Poland, although, as we follow the FTSE, themarket is off-benchmark; but for many investors it is clearly an on-benchmark exposure. We areneutral on Hungary and underweight the Czech Republic.