China’s small caps are telling a completely different story than larger companies, but they are under-analysed and face-to-face due diligence is required, said Tiffany Hsiao, lead manager of Matthews Asia China Small Companies Fund.

China’s small caps are telling a completely different story than larger companies, but they are under-analysed and face-to-face due diligence is required, said Tiffany Hsiao, lead manager of Matthews Asia China Small Companies Fund.
Defaults normally take a couple of years after the first warning signs and therefore can usually be predicted, said Vivek Bommi, European high yield and global high yield manager for Neuberger Berman. He explains some of the red flags and his approach to risk.
Industry consolidation in China’s property development market has made the separation between winners and losers more clear and improved valuations in the sector, said Bryan Collins, lead manager of Fidelity Asian High Yield Fund.
This week’s volatility in Russia’s stock market presents buying opportunities, however the market’s structural flaws mean that investors need cast-iron stomachs to weather more such events in the future.
Despite the inclusion of onshore bonds on some global indices, portfolio managers have taken minimal exposure to the onshore bond market, citing the payment settlement issue as a key obstacle.
Actively-managed China equity funds are the top performers, while ETFs lag in FSA’s ranking of best and worst China equity products at the end of Q1.
Lower leverage makes high yield bonds less risky today than during the 2008 global financial crisis, but returns are also likely to drop this year, argues Kevin Mathews, head of global high yield at Aviva Investors.
Despite the return of volatility, high yield funds and a Brazil bond fund top the list of best performers among fixed income products available to investors in Hong Kong.
Banks and insurance companies are best positioned to benefit from the growth of emerging market economies and demographic changes, argues William Palmer, co-head of emerging and frontier market equities team at Barings.
The broader adoption of the stewardship code among Japan’s listed companies is showing concrete results in the form of higher stock returns, according to Aisa Ogoshi, portfolio manager at JP Morgan Asset Management, who has been overweight Japan for five years.
Part of the Mark Allen Group.