Page 7 - DIY Investor Magazine February 2018

ASIA
Schroder Asia Pacific suggests investors keep a close eye on the impact of China’s self-induced slowdown
and wonders whether Asian equities are due a pause for breath or a correction; JPMorgan Asian singles out Korea as an attractively valued market and is concerned about short-term growth rates in India.
PROPERTY
The managers of Drum Income Plus REIT say that, in their market, strengthening occupational demand is supportive of rental growth; Mike Adams CEO of Octopus Healthcare, managers of MedicX, talks us through developments in the NHS as they affect the company.
In Europe, office rents are rising as demand pick up in line with economies; retail property is being held back by the growth of online spending but this is benefiting the logistics market
OTHER
In addition, we have comment on China from JPMorgan Chinese, emerging Europe from Baring Emerging Europe, and India from JPMorgan Indian.
We also have in depth looks at the global healthcare market, from Polar Capital Global Healthcare, and the uranium market from Geiger Counter.
There is also a discussion of factors affecting environmental markets from Jupiter Green, Infrastructure from GCP Infrastructure and Utilities from Ecofin Global Utilities and Infrastructure.
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Ian Hargreaves of Invesco Asia likes both Korea and India, pointing out though that valuation multiples in Asia are above long-term averages; David Shearer
of Aberdeen New Dawn says that equity valuations appear reasonable given improving growth prospects and favourable external conditions
EUROPE
Rodney Dennis of Henderson European Focus
reports that Europe’s bull market is mature yet points out that periods of exuberance can be both long-lasting and extreme; the managers of JPMorgan European Smaller note that European equity valuations are still at a big discount to US peers but say the market has not had a significant correction for some time.
DEBT
Donald Adamson of Invesco Perpetual Enhanced Income says low yields and a shift towards normalising monetary policy provide a challenging backdrop for 2018; the managers of the fund are cautious, keeping a close eye on the tapering process at the ECB.
Robert Jennings of Sequoia Economic Infrastructure notes that the infrastructure finance model in the UK has become more politicised post
the Labour Party conference; Angus MacPherson chairman of Henderson Diversified Income cites a number of risks that could give rise to higher volatility in 2018; the managers of that fund do not expect to see yields on corporate bonds and loans rising in the short term.
7 DIY Investor Magazine | Jan 2018