Threadneedle Investments has announced the launch of two more Asian equity funds as it continues its expansion in the region.
Both the Threadneedle (Lux) Asian Focus and Threadneedle (Lux) Asia Contrarian Equity funds will be managed by the group's Singapore-based team.
This double launch follows that of the Threadneedle (Lux) Developed Asia Growth and Income fund and the Threadneedle (Lux) Flexible Asian Bond fund last month.
The Asian Focus fund is a concentrated portfolio of 25-35 stocks and will focus on undervalued stocks of Asian companies that the managers believe will see sustainable profits growth. It will be managed by Bernard Lim.
The Asia Contrarian fund will invest in companies growing their earnings over time and will exploit near-term price weakness due to transient negative factors. It will take a contrarian fundamentals-driven and research-based investment process to portfolio construction and will be run by Ng Soo Nam.
Commenting on the launches Soo Nam, Threadneedle’s head of Asian equities, commented: 'We are seeing the beginnings of a "new moderation" in Asia after a slowdown in recent years. Asia is adjusting to a phase of "moderation" with China, its biggest economy, levelling towards sustainability.
'With this in mind, a number of corporates are already adapting and realigning their business strategies, which is where we are seeing some of the most exciting opportunities. We particularly like companies that have managed to maintain earnings growth in a moderate environment.'