Posts Tagged ‘Brexit’

Foreign investors who are seeking a strong investment region should look into Asian investment trusts according to some experts.  As the economies there mature, and the youth is indicating signs of good long-term prospects, the area is ripe for investments.

Despite the fact that in early 2016 Asian markets did it tough, things picked up during the rest of the year and the region encountered economic growth as well as company profits, both of which bolstered confidence in the Asian economy.   For people in the UK this fact has been particularly welcome. The Asia investment trusts delivered great returns, along with other overseas trusts, since when they converted back into pounds stirling, the returns are increased as the pound drops. As Head of Global Small Cap and Asia, Matthew Dobbs explained:

“Sterling returns have obviously been flattered by the weakness of the pound following the Brexit vote, but regional markets have made some progress thanks to the stabilisation of the Chinese economy, accommodative monetary conditions and modest expansion in economic activity. For 2017, we remain concerned that near-term stabilisation in Chinese economic conditions has been at the price of delayed economic restructuring and ultimately unsustainable credit growth. On a more positive note, global recovery would be helpful for the region, although subject to no material increase in trade barriers. With new leadership in Taiwan, the Philippines and, potentially, Korea, political developments will remain a focus.”

Furthermore, according to the Asian Development Bank’s recent report Asia’s $527 billion made it the top FDI destination in 2015.  And of the $1.76 trillion international FDI, almost a third went into Asia. The increase in Asia from 2014 was 9 percent.

stocksIn the last quarter of 2016, when it comes to stocks, look toward Asia, implies Daniel S. Kern, CFA, CFP in a piece subtitled ‘Invest in Asian Small-Caps.’  US stock prices are relatively high, and those in Japan and Europe are much cheaper.  Watch out for political decisions as well as policies made by the central bank, as they too will have an impact on Q4 markets, most notably.  Globally this refers to the US presidential election, the Italian constitutional referendum and the Brexit fallout.

For those seeking guidance on such investments, Glen R. Wakeman, co-founder of LaunchPad Holdings LLC, having lived and worked in both America and the east, has expertise.  Launchpad has conducted many capital market transactions and raised substantial monies of new equity and lead large organizations in Fortune 10 companies. The firm also offers “an energetic ecosystem of advisors, thought leaders, accelerators and capital providers.”

Looking further into Asia, we find the Matthews Asia Small Companies Fund that makes investments into small firms throughout Asia (apart from Japan) which have the capacity for sustainable growth.  Its focus is the small firms which are connected to Asia’s domestic demand and have holdings in “consumer-related and healthcare sectors that benefit from rising consumer spending power and an aspirational population.”

Furthermore, given that the number of global macro strategists in Asia have become “markedly bullish on the region’s prospects,” experts have stated that this has rendered “investment conditions and the economic outlook in the emerging markets seen as the best in 25 years.”