Asia and other emerging markets are on a strong footing to outperform, with valuations less than hal...
Asia and other emerging markets are on a strong footing to outperform, with valuations less than half their Western peers, according to Lloyd George Management. As a result, Robert Lloyd George, chairman and chief executive of the group, is cautiously bullish on the sector after a difficult 2001.
He said: 'After two and a half months, market sentiment for the year 2002 has brightened up considerably and there are definite signs of economic recovery round the world. The US econ-omy is growing again, although the second half may see some deceleration. But most importantly, Japan has turned the corner. In recent days, both the yen and the Nikkei have bottomed out and fears of financial implosion have receded. In Europe, too, business sentiment is improving.'
Lloyd George added that liquidity is plentiful and interest rates remain low, which is important for Asia, where domestic consumption is strengthening South Korea, China and India.
China's exports are growing at 18% year on year and GDP is set to jump 7% this year alone. India is also offering opportunities, with the government introducing further moves towards privatisation and deregulation.
Lloyd George criticised the decision by Calpers, the California State pension fund, for pulling out of emerging markets, saying the Enron debacle has illustrated that corporate governance failures are not simply a developing world problem.
He said: 'Within countries such as India, China and Indonesia, we find excellent individual companies like Infosys Technologies, China Mobile, Legend Holdings and Sampoerna, which are setting new standards in shareholder disclosure, ethics and transparency.'
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
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