Matthews Asia is focusing on consumer-related stocks with growing dividends amid rising consuming power of the middle class in the region, chief investment officer Robert J. Horrocks said.
The fund is especially upbeat on counters in insurance, food and beverage, retail and consumer discretionary sectors, the Hong Kong Economic Journal quoted Horrocks as saying.
At the end of January, its Asia dividend fund held 30.4 percent of its assets in consumer staples and 17 percent in consumer discretionary plays, while its China dividend fund held 21.7 percent of its assets in consumer discretionary stocks.
Horrocks, however, is not too optimistic about heavy industries and commodities, given the market trough in the two sectors.
He also said the negative interest rate policies in Europe and Japan, as well as the low inflation level in China, are weighing on banking plays.
Indian stocks, on the other hand, are unlikely to enter another bull market unless the government boosts its investment in infrastructure development, Horrocks added.
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