The Far East continues to proffer profitable fascination for fund managers as Mike Kerley, Portfolio Manager of Henderson's Far East Income fund confirms.
He’s just realigned his portfolio with increased weighting in China, Singapore and Thailand. “In the last month we bought property developer Guangzhou R&F in China due to its strong results and the improving outlook for the Chinese property sector.
We also added CapitaMall Trust, Singapore’s largest real estate investment trust, which gives the fund exposure to the thriving consumer sector in Singapore. Another addition was Krung Thai Bank, which we feel offers positive outlook for loan growth.”
Mr Kerley justifies this buying spree with a confirmation that Asia Pacific equities continue to offer return to investors. “Despite the multiple ‘black swan’ events in the markets this year (turmoil in the Middle East and North Africa, earthquake in Japan, oil prices consistently above US$100 per barrel, etc) markets seem to be convinced that sustained economic growth will counterbalance the negative shocks around the globe.”
He warns that the key risks for Asia remain in inflation and ‘too rapid’ a growth but with many central banks continuing their tightening, inflation is likely to peak by mid-2011 and present less of a problem. www.hendersonfareastincome.com
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