In this latest update on Asia Pacific equities, we provide some insights into our current portfolio positioning and a performance review of the regional Asia Pacific funds.
Last October, in our previous Asia Pacific update, we wrote that it was perhaps time to stop worrying about what we had to lose and to start focusing on what we maybe had to gain. Somewhat surprisingly, markets obliged and thereafter bounced pretty sharply. That sharp rally meant that we underperformed in the shorter-term, although the First State Asia Innovation Fund and the First State Asian Growth Fund have continued to perform quite resiliently over the longer-term.
However, from a bottom-up point of view, meeting by meeting, the news continues to deteriorate, despite the short-term stimulatory effects of central bank easing. As such, the portfolio changes of the last six months mark a continuation, with the intensity of our previous views increased, as time has passed and risk has risen in the face of escalating debt levels.
In this latest update on Asia Pacific equities, we provide some insights into our current portfolio positioning and a performance review of the regional Asia Pacific funds. We discuss some of our worries and concerns around the region and conclude that a strongly contrarian stance looks appropriate.
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