Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a724692

SE Asia facing tougher times warns JPM's AA-rated Davids

by Nick Tay on Dec 17, 2013 at 16:01

SE Asia facing tougher times warns JPM's AA-rated Davids

Citywire AA-rated Mark Davids (pictured) sees more opportunities in China, Hong Kong, Japan and India than South East Asia, which he expects to face headwinds next year.

‘Central banks, particularly in current account deficit economies, are responding by defending their currencies, which will have a slowing effect on their economies, and we are starting to see that in corporate numbers.

'It’s difficult to say how it will end, but it’s clearly going to be tougher now than before,’ he said.

Davids heads up the Pacific regional group at J.P. Morgan Asset Management, where he has managed JPM Asia Pacific Strategic Equity A Acc USD since September 2009, and JPM Japan Strategic Value A Acc JPY since November 2007.

He sees better opportunities within companies which can take advantage of a weakening currency and a stronger US economy.

‘We have our active money in Indian tech companies, which have performed strongly as the US economy recovered and the rupee weakened, resulting in strong earnings momentum.'

In Japan, a falling yen will definitely benefit exporters, but financials would benefit even more because of the positive reflationary impact a falling yen has on the stock market and the domestic economy.'

Davids heads up a team of Hong Kong-based Geoff Hoare (AA-rated) and Alice Wong; and Tokyo-based Oliver Cox (AA-rated).

Different strategies for different markets

Describing his approach in Japan as ‘very diversified, deep value’, he notes the team's Japan strategy valuation is around one standard deviation below the benchmark, while the strategy’s earnings revisions have been double that of the benchmark.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the funds

  • JPM Asia Pacific Strategic Equity A Acc USD
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • JPM Japan Strategic Value A Acc JPY
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Look up the fund managers

  • Mark Davids
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Geoff Hoare
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Oliver Cox
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet