Andrew Gillan, Head of Asia ex Japan Equities and Co-Portfolio Manager, provides an update covering the impact of the trade wars on the region, changes to the strategy year-to-date, his views on Southeast Asia and outlines the investment case for Asia.
- Positioning has transitioned slightly away from China and into Southeast Asia
- Southeast Asian countries such as Indonesia and the Philippines benefit from compelling growth and strong consumption
- Trade war uncertainty is holding off corporate spending decisions, relocating manufacturing and impacting discretionary purchases but these concerns may be overplayed
- Indian companies offer strong growth and attractive return on equity (ROE)
- Asia is trading at a discount relative to global equities, and should benefit from a weaker US dollar