After another challenging six months since our last note, with initially unscathed Asia finally being hit hard by COVID-19, Aberdeen New Dawn (ABD) has maintained its strong performance, showing it can still be resilient in falling markets. However, the manager says the numbers also reflect ABD’s longstanding caution over China, which experienced one of its worst market sell-offs for some time this year. A greater state interference in key sectors has raised questions about the country’s regulatory environment and even spooked some investors. ABD continues to focus only on those Chinese companies that its manager believes can adapt to the changing environment, and its exposure to the country remains lower than its MSCI AC Asia Pacific ex Japan Index performance benchmark.
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Caution wins out in the end
- Published:
04 Nov 2021 -
Author:
James Carthew | Matthew Read | Jayna Rana -
Pages:
17
After another challenging six months since our last note, with initially unscathed Asia finally being hit hard by COVID-19, Aberdeen New Dawn (ABD) has maintained its strong performance, showing it can still be resilient in falling markets. However, the manager says the numbers also reflect ABD’s longstanding caution over China, which experienced one of its worst market sell-offs for some time this year. A greater state interference in key sectors has raised questions about the country’s regulatory environment and even spooked some investors. ABD continues to focus only on those Chinese companies that its manager believes can adapt to the changing environment, and its exposure to the country remains lower than its MSCI AC Asia Pacific ex Japan Index performance benchmark.