What have been the key drivers over 2022?
2022 has been an extremely volatile market, with markets falling from peak levels, geopolitical tensions high and inflation spiralling out of control.
What areas of the Asia market does the team see opportunities going into 2023 and why?
Some of the opportunities that we see in the region are as follows.
In China, despite the heavy sell-off we have seen over the past year, we are not rushing to add to stocks here. We do not believe that the market is un-investible, but the risks of investing here have increased. We favour domestic Chinese companies in sectors which are aligned with long-term policy goals such as decarbonisation and innovation, but this must be balanced by elevated valuations.
India should continue to be a relatively bright spot. The economy offers attractive long-term structural growth because of favourable demographics and ongoing infrastructure development, and where there are high-quality companies which can capitalise on this economic growth.
Elsewhere, in Australia, the equity markets continue to offer attractive investment opportunities, where companies possess strong corporate governance and face limited competitive threats.
To conclude, given the uncertain market environment we are in, we continue to be disciplined and stick to our investment process, focused on our bottom-up stock selection, the long-term fundamentals of companies and being disciplined on valuations. Because this will be key in ensuring that we can generate consistent returns for our clients.
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