Email
PrintAug 16, 2006
- Exciting investment opportunities still abound from the markets along the Silk Road.
Hong Kong, 16 August 2006: JF Asset Management (JFAM) today announced the launch of a new campaign which will promote a series of funds to Hong Kong investors that invest in the exciting markets along the Silk Road. The theme reflects the history of the adventurous traders who first made the journey to seek and make their fortune. Today, JF is inviting investors to join them on a similar journey to benefit from the investment opportunities on a road well travelled - from Europe to Asia and from Asia to China.
The Journey Begins in Europe
Speaking at JFAM’s Investment Conference today, Paul Shutes, Client Portfolio Manager of JPMorgan Asset Management’s European Equity Group said, “The outlook for Eurozone stocks is very good, supported by attractive valuations and strong earnings growth which has been boosted by corporate restructuring. This remains the central investment case for the region while M&A activity also helps investor confidence. In addition, Europe stands out as a very attractive equity market on fundamental analysis given the supportive liquidity and robust economic growth in the region.”
From Europe to Asia
“We remain optimistic towards Asian equities from a structural perspective. Given the current predominance of risk aversion behaviour and global liquidity tightening, more consolidation would not be unexpected. In our view it is hard to see what could derail the longer-term positives for Asian equities.” added Andrew Swan, an Investment Manager with JF’s Pacific Regional Group. “Indeed, with secular growth still in short supply in the world today, Asia’s growth will become more valuable to investors. We expect fund flows to return to this region after the current market volatilities settle down. We would continue to focus our stock selections on companies that are geared to domestic consumption. Banks, retail and telecoms are among the sectors that should be the least affected by any external factors.”
From Asia to China
Howard Wang, Head of JF’s Greater China Team, further commented, “We expect further policy measures in 2H06 to rein back fixed asset investment. However, we believe Beijing will not want to risk a sharp reduction in domestic demand at a time when exports to the US are also likely to slow. As for the outlook for the domestic stock market, with non-tradable share reform no longer a major concern to Mainland investors, the A-share market is finally free to respond to China's strong macro fundamentals. No longer will foreign investors talk of a strong China macro story that is not matched by a strong micro story at stock level. In future these two strands will be positively correlated, unlike in recent years when the structural problem of non-tradable shares acted as a dark cloud hanging over the market. Key positives include more reasonable stock valuations, the re-launch of IPOs, and the continuing strength of both export and consumer demand - two growth engines that will in our view more than compensate for any likely slowing in fixed asset investment.”
- ends -
For further information please contact
Daniel Chui, Head of Investor Communications
Telephone: (852) 2800 2874
Email: daniel.wc.chui@jfam.com
Issued by JF Asset Management Limited
# # #
Notes to Editors
JF Asset Management (“JFAM”) forms a key part of JPMorgan Asset Management Holdings Inc. and is the descriptive name used for our asset management businesses in Asia ex-Japan. The brand name “JPMorgan Asset Management” covers the asset management activities of JPMorgan Chase & Co. globally.
JPMorgan Asset Management is part of J.P. Morgan Chase & Co. and is a global asset management leader providing world-class investment solutions to clients. With US$898 billion in assets under management (the Asset Management client funds of JPMorgan Chase & Co. as at 30 June 2006) and offices in 40 locations around the world, JPMorgan Asset Management offers global coverage with a strong local market presence, and leadership positions in most asset classes.
Commitment to Hong Kong
JFAM’s fund management business has remained headquartered in Hong Kong throughout the past three decades and today has nearly 300 employees based in this location. Since its formation, JFAM has established itself as one of the largest local portfolio managers in Hong Kong with over US$26 billion (30 June 2006) of funds managed locally.
As part of a major global investment group, we are committed to providing specialist teams with the resources needed to deliver successful products and performance to our clients. The Hong Kong-based Pacific Regional Group, together with the local presence of the Global Portfolios Group, form the core of JFAM’s investment management operations. In addition to the knowledge and experience of our individual investment professionals, the stability of the team has enabled JFAM to develop strong relationships with local clients.