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China: avoid infrastructure and property
Investors should avoid China's growth drivers of the past – infrastructure and property – and instead look to consumer goods, says Establishment Investment Trust manager Henry Thornton.
Investors ought to look to staple consumer goods when considering investing in China, says Henry Thornton, manager of the Establishment Investment Trust .
With the slowdown in growth in China, Thornton thinks the main drivers of growth in the country, property and infrastructure along with the luxury goods market, are in for a shock.
The Establishment Investment Trust is a global growth portfolio with most of its holdings in Asian markets, including China and Thailand. The model allows Thornton to invest in other funds and trusts, as well as equities.
The trust’s net asset value (NAV) has increased 4% in the past year and 41% over the past three years and is trading at 179p, an average 13.5% discount to its net asset value (NAV) of 207p.
Thornton also manages the Asian Focus fund at BDT Invest, which he co-founded in 2000. The fund has given returns of 73% over the past three years, compared to the benchmark FTSE Asia Pacific total returns of 65%.