Despite trade tensions, DWS remains overweight China equities and is eyeing India because domestic investors are pouring capital into their local markets, said Sean Taylor, the firm’s chief investment officer for Apac and head of emerging market equities.
In China’s inefficient equity market, active management is preferred to passive investing, according to wealth management sources.
The strengthening US dollar has resulted in tactical changes to client portfolios, according to Mark Haefele, Zurich-based group managing director and global chief investment officer.
US trade actions against China are actually targeting China’s 2025 project, a government initiative intended to move the mainland up the tech value chain, according to Victoria Mio, the firm’s chief investment officer for China.
The US large cap equity market gets the firm’s biggest overweight, while exposure to Europe, Japan and emerging markets is reduced, according to Kevin Anderson, Hong Kong-based head of investments for Asia-Pacific.
This year China A-shares are Citi Private Bank’s biggest call globally, according to Roger Bacon, head of investments for Asia-Pacific, while fixed income in client portfolios is getting intense focus.
Equity fund managers who perform best among peers during specific China market volatility are not among the best when global markets plunge.
Contingent convertible (coco) bonds carry conversion risk but promise high yield with low volatility and diversification, according to Lloyd Harris, London-based fixed income fund manager at Old Mutual Global Investors.
Some of Japan’s under-researched small- and mid-cap companies may be hidden gems that the broader investment world knows little about, according to Sophia Li, portfolio manager at First State Stewart Asia.
Though the firm does not expect a US recession over the next 12-18 months, Hui Tai, managing director and Asia chief investment strategist, recommends tweaking client portfolios now to adopt a more defensive position.
Part of the Mark Allen Group.
