Aberdeen plans to enter India as it is least affected by trade war
One of world’s largest investment companies that started in 2017, Aberdeen Standard Investments is planning to take refuge in Indian and Southeast Asian stock markets. The firm claims that the economies of these nations are consumer driven and the best possible escape in this situation of crisis.
The Asian equities director for Aberdeen Standard Investments, Pruska Iamthongthong announced that her firm is overweight on both the markets. IT is purchasing firms that have strong hold in the market. A turgid balance sheet and regular cash flows is what they are looking for.
In a recent email, Pruska Iamthongthong commented that “India and Southeast Asia are less affected by the vagaries of global trade”.
As per the data provided by Bloomberg, through closing this Tuesday, Asia Pacific Equity fund has funded about 6% return this year. Aggravated by the increasing trade tensions between U.S. and China recently, the MSCI Asia Pacific Index was almost going to lose its year to date profit this month. Currently, in 2019 it is about 3%.
Recently discussing about the same issue, Iamthongthong said she is on a look out for banks and insurance firms. Refraining from mentioning individual stocks, she added, “We are targeting growing consumption of financial products in Asia where penetration is low as this means there is room for growth. Insurance is a prime example.”
As of July 31, among the top 10 holdings of the Asia Pacific fund comes a provider of housing finance in India, Housing Development Finance Corporation and an Indonesian lender, Bank Central Asia Tbk.
The issues in India and Southeast Asia are far from those associated with the US-China trade war. Amidst the slowdown in economic growth, the people in India have grown pessimistic about employment opportunities and started refraining from spending. Also, according to Bloomberg Intelligence Economist Tamara Mast Henderson, the largest economies of Southeast Asia have grown at a slow pace since the global financial crisis.
Besides Aberdeen, Credit Suisse Group AG announced that it has recognised the uncertainties regarding the trade war and is planning to turn more to defensive stocks. For the first time since the euro-zone crisis, UBS Global Wealth Management, the world’s largest wealth manager has experienced a drop in equities.
In another news, it has been asserted that the Renaissance Club will host the Aberdeen Standard Investments Scottish Open and the Aberdeen Standard Investments Ladies Scottish Open in 2020. For the second successive session, both the events will come back to the East Lothian Venue.
In a recent statement, chairman of ASI, Martin Gilbert said, “We’re looking forward to returning to the Renaissance Club in 2020. The facilities on and off the course are second to none. The feedback we’ve received is that the location works well with the golfing public as well as our colleagues”.
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