Aberdeen Asset Management (Abrdn) is launching a new Asia equity fund focusing on Chinese and Thai stocks as it believes China's reopening will drive Thailand's tourism industry to expand substantially this year.
With a focus on long-term investment, the company will select funds that are strong and able to withstand market volatility in all situations, such as unstable interest rates or a recession in developed markets such as Europe and the US, said Pongtharin Sapayanon, fixed income fund manager at Abrdn.
"Assets worth investing in this year still include stocks and bonds. We still recommend quality stocks more than growth stocks," he said. "The company will focus its investments on stocks with good cash flow and consistent dividends that are available in attractive markets on every continent."
Developing Asian markets are interesting, particularly China and Thailand, said Mr Pongtharin. The Chinese stock market should benefit from the country's reopening, while the Thai bourse should be helped by the election scheduled to take place in May and the ongoing tourism rebound, he said.
Mr Pongtharin said funds recommended by Abrdn can withstand all market conditions. These include the Aberdeen Global Dynamic Dividend Fund (ABGDD), which focuses on investment units of the Aberdeen Standard SICAV I master fund, and the Global Dynamic Dividend Fund, which focuses on growth and global value stocks.
Abrdn projects the Stock Exchange of Thailand (SET) index will move in a range of 1,669 to 1,811 points this year, with some upside potential. The company weights investment in large-cap stocks, and recommends the Aberdeen Siam Leaders Fund (ABSL), which focuses on stocks from the first 150 listed companies as well as stocks with good fundamentals that have potential to grow.
In addition, Aberdeen China Next Generation Fund (abcnext) is recommended for Thailand and China. The fund looks for outstanding small and medium-sized stocks with high growth opportunities in the Chinese economy. The fund has a well diversified portfolio to capture mega-trends in the consumer, healthcare, green economy and tech sectors, and it can offer investors the opportunity to tap into the growth and attractive potential of these stocks.
Aberdeen Small-Mid Cap Fund (ABSM) invests in small and medium-sized Thai stocks. The fund's policy is to invest in listed firms on the SET or Market for Alternative Investment, said Mr Pongtharin.