Thursday June 27, 8:21 PM
WHY YOU SHOULD INVEST IN ABERDEEN'S ASIAN FUNDS
By Vasu Menon, Chief Editorial finatiQ
We are offering an attractive discount of 0.5 per cent off our initial sales charge when you buy the Asian funds listed below from Aberdeen Asset Management. The offer is valid from 1st July to 31st July.
More than the discount, this is a good time to buy into Asian equities as fund managers remain bullish on the region's prospects over the next 12 to 18 months. Regional bourses have also pulled back in the last two months after a sharp run-up between September last year and March this year. For those who had missed the boat, the correction presents a good opportunity to accumulate at lower levels.
According to James Clunie, head of global equities at Aberdeen Asset Management, Asia is likely to outperform the US as valuations are more attractive. Also, earnings expectations in Asia are more realistic and are likely to be exceeded. In contrast, earnings on Wall Street appears too high and are currently being downgraded. So there is a bigger risk of earnings disappointments in the US compared with Asia.
Asia has also gone through a longer period of restructuring and consolidation after the crisis in 1997-98 and it's ahead of the US in this respect. The internet and stock market bubbles have only burst in the US recently and it will take a longer time before the consolidation is over. So there is a good chance that Asian bourses will recover ahead of US markets.
Aberdeen's conservative investment style is suitable for a more risky region like Asia, which is perhaps a reason why many of its funds have outperformed their peers. Some examples are the Aberdeen China Opportunities Fund, the Aberdeen Singapore Equity Fund and the Aberdeen Pacific Equity Fund.
*Performance is based on bid to bid prices, net income reinvested in Singapore dollars, up to 14 June 2002
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