Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Asia map

4642

Fundamentals will drive returns in 2010, say Asia fund managers

RELATED TOPICS​

Fund managers in the Asia equity sectors believe that companies that can deliver sustainable and predictable earnings streams will demand a healthy premium over those that cannot, according to Standard & Poor’s Fund Services in its latest annual review of the sectors.


Fund managers in the Asia equity sectors believe that companies that can deliver sustainable and predictable earnings streams will demand a healthy premium over those that cannot, according to Standard & Poor’s Fund Services in its latest annual review of the sectors.

"The general view is that macroeconomic factors will play a less prominent role in 2010 than the previous year, and markets will be far more fundamentals driven," says John Monaghan, lead analyst on the South East Asia, Pacific and emerging Asia sectors at S&P Fund Services.

Samantha Ho at Invesco fully subscribes to this view and expects the Chinese market to broaden out at the sector level, but believes that this expansion will be dominated by the market leaders.

Agnes Deng at Barings also believes that earnings will drive the market in 2010 led by domestic consumption driven by the growth of the rising middle-class.

Despite being positive, Louisa Lo of Schroders has a slightly more balanced view and during early Q4 2009 took steps to rein in some of her most active positions, in a bout of profit taking. London-based, Charlie Awdry, manager of the S&P Fund Services A rated, Gartmore China Opportunities fund, also held a mixed view.

Elsewhere in the region, the message was upbeat. Sung Woo Kim, manager of the Mirae Korea Equity fund, was positive on the prospects for Korea, citing a number of companies who are among the world leaders in their respective sectors.

“During the review period, Korea was reclassified from emerging to developed market status by index provider FTSE,” Monaghan says. “This buoyed the market’s returns over the period and fund managers foresee another boost if other index providers follow suit.”

Bratin Sanyal, head of Asian equities at ING, sees the smaller, export-oriented economies within the Asean sub-set of countries, continuing to catch up with the other markets within the region. He was particularly optimistic on the prospects for Thailand, as was the team at Templeton, as evidenced by their 24 per cent allocation (compared to two per cent for the MSCI Asia ex Japan benchmark) within the AAA rated Templeton Asian Growth fund.

The Invesco team remains positive on the outlook for India and takes the view that infrastructure, consumption and outsourcing will be the key drivers of the economy going forward. They also welcomed the new government’s proposed divestment program of state owned services and their approach to contain the fiscal deficit.

Latest News

RQI Investors, an Australian-based active quantitative equities manager and part of the First Sentier Investors..
UK-based wealth management companies London & Capital and Waverton have announced that they have reached..
Figment Europe, a provider of institutional staking infrastructure, writes that it is solidifying its presence..

Related Articles

British pound coin
Fixed income’s return to favour following widespread interest rate rises has led to investors overcrowding sterling investment grade credit, delegates at the Pensions and Lifetime Savings Association investment conference have heard...
Fixed income’s return to favour following widespread interest rate rises has led to investors overcrowding sterling investment grade credit, delegates..
Sustainable Economy Top Panel
Europe is driving the growth in sustainable investment with global assets under management in ESG-labelled funds passing USD2.8 trillion...
Europe is driving the growth in sustainable investment with global assets under management in ESG-labelled funds passing USD2.8 trillion...
Pension funds
UK institutional investors are questioning the value of investing in private markets despite pressure from government to finance the country’s net zero and levelling up ambitions...
UK institutional investors are questioning the value of investing in private markets despite pressure from government to finance the country’s..
Juan Nozal, Mapfre Asset Management
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024, in what he predicts will be an outstanding year for this asset class...
Juan Nozal, Fixed Income Portfolio Manager at MAPFRE Asset Management, talks about the outlook for fixed income assets over 2024,..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by