Among the opportunities in emerging markets this year, theme investing, as well as China deserve a closer look, according to Rob Marshall-Lee, investment leader in the emerging and Asian equity team at BNY Mellon-owned boutique Newton Investment Management.
Investors in China’s technology sector should look beyond the flagship giants Baidu, Alibaba and Tencent, argues William Fong, director for Hong Kong China equities at Barings.
While ESG has become an inherent part of risk management, SRI (socially responsible investment) products are, by comparison, designed to meet the demand of specific investors, Aberdeen Standard’s William Scholes told FSA.
Tapping into the growing consumer demand opportunities in Asia means high exposure to Greater China, but requires caution around high concentration in top stocks, said Invesco’s William Yuen.
Bluebay built an ESG version of its existing high yield fund and found that screening in a high yield bond fund requires reliance on in-house ESG analysis rather than external providers, according to My-Linh Ngo, head of ESG investment risk at Bluebay Asset Management.
China will see a stronger renminbi and a looser money supply in 2018, as the authorities’ agenda aimed at curbing domestic leverage evolves, argues Gregory Suen, investment director for Asian fixed income at HSBC Global Asset Management.
Natural resources-related equities will be largely supported by stable demand and improvements in business models, argues Tom Nelson, head of commodities and resources at Investec Asset Management.
Despite a depreciation of the rupiah this year, Indonesian bonds have been upgraded by ratings agencies and will also be included in an international index this year, explains Stuart Ritson, head of Asian rates and FX at Aviva Investors.
Brexit will likely be ‘softer’ than previously thought, UK bonds are cheap, and the firm’s global credit income fund has 20% invested in sterling denominated bonds, according to credit portfolio manager Michael Scott.
Services offered by China’s securities brokerages, banks and insurers are not yet in wide use among domestic households, creating growth opportunities, said Howard Wang, co-manager of the JP Morgan China Pioneer A-share Fund.
Part of the Mark Allen Group.
