Anthony Srom, Portfolio Manager of the Fidelity Asia Fund and Gary Monaghan, Investment Director, Head of Investment Specialist, Asia ex-Japan share their latest perspective on the Fund.
- The risk-reward profiles of Chinese consumer stocks have shifted following the re-opening rally and we have started to reduce exposure.
- The semiconductor and information technology (IT) hardware sector has seen some negative market sentiment, but long-term tailwinds and a shifting market cycle have created selective buying opportunities.
- India is underweight in the portfolio given it is relatively expensive.
- We see opportunities in the aviation space as the Asia Pacific region is fully re-opened.
- Global inflation and interest rates could remain higher for longer. If we enter a more difficult market environment, our focus on firms with dominant market positions and strong balance sheets should hold the portfolio in good stead.