Posted inHead To Head

HEAD-TO-HEAD: Blackrock vs Schroders

FSA compares two APAC ex-Japan equity products: the Blackrock Asian Dragon Fund and the Schroder ISF Asian Opportunities Fund.
by Francis Nikolai Acosta
Asia-Pacific ex-Japan

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Germaine Share, Morningstar

Optimism for Asia Pacific (ex-Japan) equities has continued into 2018.

Tuan Huynh, Deutsche Bank Wealth Management’s Singapore-based chief investment officer and head of discretionary portfolio management for Asia-Pacific, forecasts that the region will outperform all major markets globally.

Holding similar sentiment is Raymond Chan, Allianz Global Investors’ chief investment officer for Asia-Pacific equities. He adds that Asia equities are backed by the US dollar weakening trend and improving corporate earnings in the region.

Because the performance of Asian equities has been driven largely by earnings, valuations are not that expensive, Chan said. “They continue to trade at a very attractive discount compared to global markets.”

However, he acknowledges that matching the performance of Asia equities in 2017 is unlikely. “I am not expecting the same kind of magnitude in terms of last year’s performance.”

Ayaz Ebrahim, Hong Kong-based co-head of the Asia-Pacific regional team at JP Morgan Asset Management, said to watch corporate earnings in 2018.

“We are not looking at stretched valuations, but we are no longer looking at cheap valuations. So what’s key going forward is looking at earnings for 2018,” Ebrahim said.

Against this backdrop, Germaine Share, Hong Kong-based associate director for manager research at Morningstar, compares two Asia-Pacific (ex-Japan) funds: the Blackrock Asian Dragon Fund and the Schroder ISF Asian Opportunities Fund.

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