Trustnet Magazine Issue 17 April 2016 | Page 22

IN FOCUS Fund BLACKROCK GF ASIAN GROWTH LEADERS Andrew Swan’s $860m fund could be ideally placed to catch a rebound in emerging Asia 80% BlackRock GF Asian Growth Leaders (59.50%) MSCI AC Asia ex Japan (19.67%) 70% 60% 50% 40% 30% 20% 10% 0% Feb 16 Nov Aug May Feb 15 Nov Aug May Feb 14 Nov Aug -10% May MANAGER: Andrew Swan FUND SIZE: $860m LAUNCHED: 31/10/2012 OCF: 1.11% PERFORMANCE OF FUND VS INDEX SINCE LAUNCH Feb 13 FILE intact. Therefore, the current low valuations represent an attractive entry point. Tom Becket, chief investment officer at Psigma, holds this view. He says that although it is hard to predict when sentiment will improve, investors should look to valueorientated Asian funds as these are exposed to some of the region’s most bombed out stocks, which should benefit the most from a rebound. “Quality companies are the most expensive they have been relative Nov 12 A sian equities have fallen hugely out of favour recently – and for good reason. The region has been hit by numerous headwinds over recent years, most prominently China’s growth slowdown, the devaluation of its currency and the bursting of a domestic stock market bubble. Throw in concerns about how tighter US monetary policy may affect economies with high levels of dollar-denominated debt and it is little surprise the MSCI Asia Pacific ex Japan index has fallen some 11 per cent over 12 months. Many analysts warn investors to expect further losses, given many of the causes of the recent volatility haven’t dissipated. However, others argue that the long-term case for investing in Asia and emerging markets – a young and growing population combined with higher levels of economic growth than in the developed world – remain to cyclical value ones in the recent past,” Becket said. “The outlook is challenging for Asian equities, as China attempts to rebalance, but those fears have been overdone in some valuations of cyclical