Recommended Unit Trusts 2018/19 Seminar: China, India, and Asia Pacific REITs by Manulife Asset Management
Edwin Lee, Vice President of Manulife Asset Management Services Berhad Partner Distribution, shares his views on China, India, and Asia Pacific REITs with Fundsupermart.
1. Do investors need to worry about China's economy slowdown given the mounting trade tensions with US, along with Beijing's continued deleveraging efforts? Is this concern overblown?
According to Edwin, although the overall picture of deleveraging is still ongoing in China, the Chinese government is not as rigid as before. For example, in view of the trade tension with the US, the Chinese government has announced a tax cut to boost companies' earnings as well as special funds to help out the SMEs in times of market uncertainties.
2. How has the India market performed in 1H 2018 amid trade tensions between US-China and massive foreign capital outflow from emerging markets? What is your outlook for this market for the remainder of 2018?
He is seeing a boost in India's infrastructure spending. He said that the market is self-supportive. The systematic investment plan (SIP) has lent support to the market which makes it a bit resilient as compared to other markets. In the mid-June 2018, India came up a fair bit when most of the markets was in a correction.
3. Are the valuations of India equities attractive right now?
Due to the correction in the first quarter, the valuations are around the mean value.
4. Should investors be concerned as developed countries' central banks are now undertaking monetary tightening? How has Asia Pacific REITs typically performed under this environment?
After the FOMC meeting in June 2018, the Fed has given a clear direction in terms of its rates hikes. As such, the US 10-year treasury bond yield has been quite stable. Due to this environment, Asia Pacific REITs have started to rebound.
5. Given that the Manulife Investment Asia-Pacific REIT fund has a high weighting in Singapore, are there any interesting stories behind your exposure within the Singapore REIT market?
According to Edwin, by investing into Singapore REITs, it does not mean that the fund is only invested into Singapore assets. This is because Singapore has been promoting itself as a global REITs hub for Asia. Although you buy a REIT in Singapore, you gain access to assets beyond Singapore.
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||: Recommended Unit Trusts 2018/19 Seminar: China, India, and Asia Pacific REITs by Manulife Asset Management