Fund focused on growth in Hong Kong, Singapore and Korea Henry Cooke's Far Eastern fund is focusing ...
Fund focused on growth in Hong Kong, Singapore and Korea
Henry Cooke's Far Eastern fund is focusing its portfolio on Hong Kong, Korea and Singapore.
The Oeic, now branded as the Solus Eastern Enterprise fund, is run for Henry Cooke by Lloyd George Management. It has around 35% in Hong Kong, 15% in Singapore and 19% in Korea. Other weightings include 12% in Taiwan, 8% in Thailand, 6% in Malaysia and 1% in Indonesia.
Adaline Ko, who runs the fund, said that Asian markets have turned around this year and are now offering growth as well as liquidity.
She said: "We are positive about the region mainly because we believe that growth is back in Asia and there is also liquidity there. The big help is Japan where you are seeing a bit of growth. We are still fully invested in the region."
Earlier this year, the portfolio increased its weighting in Korea, Thailand and Singapore and cut exposure to Hong Kong and China. In the restructuring move the fund raised weightings in Korea, Thailand and Singapore to a 45% total after having no holdings in Korea or Thailand, and 10% to 15% in Singapore for most of 1997 and 1998. The portfolio also reduced its exposure to Hong Kong and China to 30% from 50%.
Ko added: "We still like Hong Kong and China. Generally we see the economy bottoming out and we believe we could see some earnings upgrades later on in the year.
"The other thing with China is that the government is going all out to reflate the economy and that would be good for Hong Kong as well.
"In Korea, the story is well known and is continuing. The restructuring in Korea will benefit the companies there and the earnings of the companies - that is why we are still happy to be invested there. In Taiwan we see the fundamentals turning around decisively. Taiwan will grow strongly and will be led by exports, especially electronics exports.
"Singapore has been a good story for some time and we still like it. It is generally a growth area. We see that the companies are all doing well and the restructuring there has been successful.
"In Thailand we also see a lot of the companies doing well and the banks have done much restructuring."
Overall, Ko is not concerned about US interest rates rising and she does not think that these will have a knock-on effect on Asia.
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