MARTIN CURRIE PACIFIC TRUST: Get a taste of Asia's best mature - and raw - economies
With all investment eyes on the economic basket case that is Greece, it is difficult to find anyone in the City with a view on anything other than whether the country will default on its debts.
But there is one brave individual willing to air an opinion on investment opportunities, rather than talk about the dangers to stock and bond markets of Greece going into meltdown – Andrew Graham, head of Asian equities at investment house Martin Currie.
Though not based in the City – he works at Martin Currie’s offices in Edinburgh – Graham is keen to talk up the case for investing in Asia, which has a mix of mature economies (Hong Kong, Taiwan and Singapore) and raw (India, Malaysia and Thailand).
‘There are powerful dynamics at play in the region,’ says Graham. ‘By 2020, there will be 4.1billion people living in Asia excluding Japan – a rise of 700million over 20 years.
'About 1.7billion will be urban dwellers, with half a billion earning at least $10,000 (£6,300) a year. They will have low debt and a need for consumer goods.
'It’s a powerful consumption story that will feed through into vibrant economic growth and earnings of the region’s leading companies.’
He believes that GDP growth after inflation across Asia will hit six per cent this year, supporting strong company earnings growth – 8 per cent this year and 10 per cent next.
Opportunity: Andrew Graham sees growth in Asia
Add in the fact that Asian stock markets are not as pricey as those in Europe and the US and Graham says the investment case is compelling.
Graham, an Asian fund manager for more than 20 years, runs Martin Currie Pacific, an investment trust invested in 27 stocks across eight stock markets.
Unsurprisingly, consumer stocks dominate the portfolio – such as electronics giant Samsung and the trust’s biggest holding, life insurer AIA.
‘Asians are massively underinsured,’ says Graham, ‘so the company has great potential to grow new business.’
The trust underwent a revamp last year, refining its investment remit to exclude Japanese firms. Its performance, relative to rivals, is satisfactory – above average over the past year.
Yet experts say other funds offer better returns from Asia.
For example, Laith Khalaf, of broker Hargreaves Lansdown, prefers First State Asia Pacific Leaders, saying: ‘It has a conservative approach, taking some edge off the risk of investing in the region.’
- Jaguar unveils new £35k crossover 4x4 F-PACE - as it hopes...
- The 100 best places for families to live revealed: Do you...
- The easy way to beat your parking ticket: Student creates...
- MARKET REPORT: Dart travels in right direction as group says...
- SIMON LAMBERT: It's tempting for investors to try to dodge a...
- FTSE CLOSE: Footsie ends the week down as US stocks plunge...
- Could you turn up to hotel and find your paid-for room...
- Price of petrol and diesel dropped by 5p last month – but...
- Low battery? The little-known way to charge your mobile...
- New car sales accelerate in traditionally quiet month of...
- Can Sir Howard Davies rescue RBS? From fines and losses to...
- How can I get my problem tenant evicted and what are the...