Weak Asia-Pacific economies offer attractive long-term buys
Asia-Pacific economies are expected to remain weak this year but continue to offer an attractive buying opportunity for long-term investors, according to Fidelity International’s Asia Pacific CIO Kathryn Matthews.
She said the market weakness of recent months offers “some companies and industries attractive growth opportunities at very reasonable valuations”.
“Asian stocks are very cheap and some of the large cap quality names are being traded at similar levels to their smaller-cap counterparts.
Asia has strong underlying fundamentals, compared to other global markets, which will underpin its future growth, Matthews said.
“While volatility is expected to continue, there’s a lot of cash on the sidelines, and once we see a recovery in confidence and increased investor flows Asia-Pacific markets are likely to benefit,” she said.
Recommended for you
Private wealth manager Escala Partners has increased its alternatives allocations to more than a third in the past three years, describing the asset class as offering “fertile ground” for diversification.
The Financial Services Council has recommended implementing a per capita limit per annum for financial advisers when it comes to the CSLR levy to allow them to expand their business without levy uncertainty.
DASH Technology Group has seen a 49 per cent uplift in its carrying value and is completing a new capital raising, having already received $30 million from growth investor Bailador.
At the halfway point of the year, consolidation pressures continue to drive financial services M&A with three areas identified as targets for asset and wealth managers, according to PwC’s mid-year outlook.
