3 key reasons why Asian equities are compelling now

Ask most investors where they invest geographically and it’s pretty much guaranteed they’ll mention Australian equities and, for the international component, the US. The more adventurous investor might have a chunk of European equities and perhaps a broad-flick to emerging markets... of which Asia might scrape in as a component.

Man GLG’s Andrew Swan believes Asia is an exciting part of the market and investors should be taking a closer look for three key reasons:

1. The big technology thematics, particularly AI, are an enormous positive for Asian industries, not to mention some of the big chip manufacturers are based in Asia.
2. The dynamics across South East Asia as a result of a young population, favourable debt and the ability to accelerate growth once the US cuts rates.
3. The ‘Big’ countries: China and India. Both dominant players in the global economy and thus, valuable to be exposed to.

While the last point might trigger some concerns, China has had some challenges in recent years. After all, Swan argues that China is on the cusp of massive change.

In this episode of Fund in Focus, Swan discusses the dynamics across Asia, the two options he sees for change in China, and where he focuses his investments across China and India. He also explains the process behind the Man GLG Asia Opportunities A Fund and how investors can use the fund within a portfolio.

Fund profile

• Name of the fund: Man GLG Asia Opportunities A
• Asset Class: Global equities
• Investment objective: To maximise long-term capital appreciation primarily through exposure to a concentrated portfolio of equities either listed on securities exchanges in the Asian region, or which derive a majority of their revenues from the Asian region.
• Visit Fund page

Please note this interview was filmed on 30 April 2024.

Time stamps: 

• 0:00 - Introduction 
• 0:15 - Overview of the Man GLG Asia Opportunities Fund 
• 1:15 - The case for investing in Asian equities 
• 4:02 - Opportunities for China to change 
• 9:30 - Investing in India 
• 11:19 - The process for identifying stocks 
• 13:19 - How to use the Fund in a portfolio