CHINA - Active long or hedge fund-based investment strategies are the key to generating attractive returns from China in 2005, says Baring Asset Management.
BAM warns that while China related stocks appear lucrative in 2005, the market remains extremely volatile.
According to Khiem Do, manager of the Baring China Absolute Return Fund, an effective way of “playing Chinese growth” is to invest through either an actively managed long only equity fund of a long/short equity hedge fund.
BAM suggests success in China depends on a totally active performance-related strategy, based on: investing in growing Chinese companies, investing in Hong Kong-based companies and investing in companies from countries that export to China.
Do adds: “We concentrate on adding alpha rather than trying to chase beta and believe that investors benefit from BAM’s ‘big boutique’ approach, which facilitates disciplined investment, prudent business management, operational excellence and comprehensive risk management for all our products.”
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers