View the article online at http://citywire.co.uk/money/article/a313457
The week in funds: Young, McGlashan, Dixon
Young prefers India as long-term punt, McGlashan creates new Japanese large-cap fund, Dixon's new fund to target UK engineering and pharmaceuticals.
Young prefers India as long-term punt
India’s strong corporate culture combined with a steadier rate of manufacturing growth has led Aberdeen Asset Management’s veteran head of equities Hugh Young (pictured) to consider the country a better long-term investment bet than China.
Young, who manages the £1.2 billion Aberdeen Asia Pacific fund , has long held the view that Indian companies are better positioned than Chinese but now has additional concerns regarding the sustainability of China’s rapidly expanding manufacturing operations.
He said: ‘The biggest issue with the Chinese is that they have gone gung ho into manufacturing with no control and wages have soared over the last 10 years.
'It is not dissimilar to what we saw 10 years ago in the region with the Asian crisis.’
The manager added that the better comparative quality of Indian companies when compared with Chinese lead him to see India as a more attractive bet over the long term.
Young said Indian companies were more aligned to the interest of their shareholders than their Chinese counterparts, many of which he said owe their allegiance to whichever part of the government that owns them.
He estimates both regions could see another 20% of falls in the next 12 to 18 months before a recovery is seen but predicts that India will come out better placed than its neighbour.
McGlashan creates new Japanese large-cap fund
Using high yield and dividend growth stocks the manager will attempt to unearth potential capital growth investing in 40 Japanese stocks.
A number of factors in recent years have made the region more attractive, said McGlashan.
News sponsored by:
Making the most out of Europe’s potential means seeing things differently. Learn more about how BlackRock’s focused approach to investing in Europe helps investors unlock the continent’s vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the funds
Look up the fund managers
More from us
- The Daily Interview:Indian firms 'light years ahead of China', says Aberdeen's Young
- Asian tiger limps back to cave
- Vinke departs JO Hambro
- CFI Fund Results: Balfour moves into Japanese mid and large-cap stocks
- The week in funds: Japan, Schroders, Blackrock
- Investment veterans launch new equity boutique Matterley
- Pound plummets further against dollar
- UK economy grinds to standstill in second quarter
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.