William Lam, Co-Head of Asian and Emerging Markets EquitiesVolatility provides opportunity, uncertainty leads to mis-pricing
As the Covid-19 pandemic recovery continues, a lingering uncertainty over the global economic outlook remains. Expectations that further periods of heightened market volatility could lie ahead.
Being valuation-driven, contrarian investors with a long-term investment horizon, we often find our best ideas in periods such as these.
The insights provided here highlight what we believe to be the areas of greatest risk and opportunity in Asian equity markets today.
While Asian equity markets are trading at their biggest discount to world markets in over a decade, there are big valuation discrepancies between and within markets and sectors. Find out more.
We believe in the importance of having a balanced strategy. Our valuation driven approach means that the strategy currently has a strong bias towards ‘value’, there are several themes that can be identified.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
As a large portion of the strategy is invested in less developed countries, you should be prepared to accept significantly large fluctuations in value.
The strategy may use derivatives (complex instruments) in an attempt to reduce the overall risk of its investments, reduce the costs of investing and/or generate additional capital or income, although this may not be achieved. The use of such complex instruments may result in greater fluctuations of the value of a portfolio. The Manager, however, will ensure that the use of derivatives does not materially alter the overall risk profile of the strategy.
Investment in certain securities listed in China can involve significant regulatory constraints that may affect liquidity and/or investment performance.
All data is as at 30.04.22 and sourced from Invesco unless otherwise stated.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
