Aberdeen avoids 'overvalued' China

Chairman Charles Irby says the firm has “significantly lower exposure” in the communist country than benchmarks or peer groups, due to its avoidance of Collaterised Debt Obligations (CDOs). He says many CDOs, a type of asset-backed security, have been built on mortgage-backed structures and he is concerned about lack of price transparency and credit quality. Aberdeen is also underweight in commodities, another area it feels is overvalued. “The investment environment over the last twelve months has however been characterised by increasing extremes,” Irby says. “Some markets have become o...