Opportunities in non-Bric Asia prompt M&G GEM fund to underweight China

The manager of the £199m M&G Global Emerging Markets fund has taken an underweight stance to China in the view valuations are more attractive in other Asian countries.

Matthew Vaight says Thailand, Indonesia and Malaysia exhibit just as strong economic growth and consumption patterns as China, but stocks there can be far cheaper. He says he finds better opportunities in non-Bric nations overall. “They might not grab headlines, but are better valued,” he says. “In emerging markets, we can find companies and business models that are better than in the developed world.” M&G’s GEM fund has a 4.8% overweight to Thailand and 2.4% overweight to the Philippines. Vaight recently moved to a modest underweight in Indonesia after selling a holding. His under...