Tactical stock selection crucial to navigate US/China trade war
A tactical stock selection approach will be key for investors navigating the US/China trade implications, which means that they will need to understand that some sectors might be more affected than others, according to Premium China Funds Management (PCFM).
The firm said that sectors such as technology, transportation, commodities or energy might be hit slightly harder by consequences of the trade tensions. At the same time, the financial brokerage sector would be also expected to face possible higher volatility.
PCFM’s Jonathan Wu said that his both funds, Premium Asia Fund and Premium China Fund, had reduced their exposure to these sectors over the last six months, particularly to export-oriented Chinese companies.
“We expect both nations are motivated to strike a deal and the near-term market volatility will not be a major concern for long term investor in the Chinese equity markets,” he said.
“In the Premium Asia Fund, our holdings in information technology sector are mainly Taiwan and South Korea companies, which the impact would be much indirect from this round if trade talk.”
AUTHOR
Oksana Patron
Recommended for you
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
Regal chief investment officer Philip King will step down from listed investment company VGI Partners Global Investments after the LIC reported a loss of $17.6 million for FY25.
Real asset commentators have shared what advisers should be considering when conducting their due diligence on the assets and how they can mitigate illiquidity for retail clients.
