SC Licensed Dealer and Investment Adviser
      Fundsupermart iPhone App Fundsupermart Android App FSM Mobile App | Global   

FSM Webcast > Ask The Experts: China's Urbanisation and Taiwan's Elections Themes

Ask The Experts: China's Urbanisation and Taiwan's Elections Themes

Ng Soo Nam, Chief Investment Officer, Nikko Asset Management Asia Ltd explains how his views on China's urbanisation and Taiwan's elections helped to drive his portfolio's performance.

- Tell us how you structure your portfolio -- do you prefer a broadly diversified portfolio or a more concentrated focus based on fewer 'best ideas'?

We prefer to have a more concentrated portfolio; in other words we prefer to be more selective, and it is in line with our investment process. We concentrate on companies which are riding on good top-down themes, e.g. China's urbanisation and cheap valuations. This narrows our portfolio to a select group of companies at any one time, with 50-60 companies. If we don't have that, we aren't doing our job very well.

-Can you give us an example of one position that has done well for your portfolio, and the basis behind that position?

A theme that has done well is our take on Taiwan's presidential elections. Back in 4Q 2011, political outcome of elections was uncertain, with polls showing a close fight between KMT and DPP. My judgment call was that, the Taiwanese people would not risk economic ties with China. What I did was to visit Taiwan, speak to people on the ground, and it confirmed my belief that people are not going to risk it. Stocks from property and domestic demand names did very well after KMT won.

-Can you walk us through one position that has not done as well, and how you managed that position?

A group of stocks in the portfolio that have a consistent of dividends to anchor a fund's return, e.g. telco companies, REITs and in the last two to three months they have underperformed. But for the specific role they play in the portfolio, I will continue to hold them, and their business case is still very strong.

-Given your outlook, how have you positioned your portfolio to profit from the various investment ideas?

Sticking to what we do best: finding strong companies, strong growth themes from a top-down and cheap valuations. From time to time when a company performs and valuations get more expensive, we find cheaper value elsewhere. We continue to monitor closely how a company is performing in terms of its business operations. For example, the theme of China's consumer growth theme evolves. Twenty years ago, it is about selling affordable goods to the Chinese but nowadays it is also about luxury brands, e.g. BMW car maker. So we have to constantly look into how a theme evolves.

All materials and contents found in this Site are strictly for information purposes only and should not be considered as an offer, or solicitation, to deal in any of the funds or products found in this Site. While iFAST Capital Sdn. Bhd. (“IFCSB”) has tried to provide accurate and timely information, there may be inadvertent delays, omissions, technical or factual inaccuracies and typographical errors. Any opinion or estimate contained in this Site is made on a general basis and neither IFCSB nor any of its servants or agents have given any consideration to nor have they or any of them made any investigation of the investment objective, financial situation or particular need of any user or reader, any specific person or group of persons. No investment decision should be taken without first viewing a fund’s prospectus, product highlights sheet and if necessary, consulting with financial or other professional advisers. Past performance and any forecast is not necessarily indicative of the future or likely performance of the fund. The value of the unit and the income from them may fall as well as rise. Opinions expressed herein are subject to change without notice. Please read our disclaimer in the website.

Broadcast Date : 05 March 2012
Video Duration : 00:07:34
Programme : Ask The Experts: China's Urbanisation and Taiwan's Elections Themes
0 ratings Views: 1492 Language: English
URL : Bookmark and Share

Fund house interviews
FSM in-house interviews
Financial planning interviews
Industry experts interviews

Page 1 of 20   1   2   3   4   >   >>