It is also home to a massive young and increasingly educated workforce. Earlier this week, Dyson announced that it is opening a $400m research centre in Singapore. While we have a dwindling number of engineers in the UK, 40% of graduates in Singapore have studied science or engineering.
A strong US dollar is a concern, but not a new one. And, with The Economist having triggered the ‘curse of the cover page’ in December, with its talk of the “Mighty Dollar”, perhaps that will become less of a problem in the coming months anyway.
So while the Asian stock market has obviously come some ways from its lows, sentiment is still very negative and therefore valuations are still attractive. Longer term, the growth potential relative to western markets is significant but tomorrow’s winners won’t be those of today. It’s a market where active managers are a must.
My favourite funds investing in Asian equities include JOHCM Asia ex Japan, Jupiter Asian Income, Schroder Oriental Income and Stewart Investors Asia Pacific Leaders.
*Source: FE Analytics, as at 31st January 2017. Total returns in sterling.
Past performance is not a reliable guide to future returns. You may not get back the amount originally invested, and tax rules can change over time. Clive’s views are his own and do not
