0161 448 4755
Begin Scroll
Down Arrow

After a turbulent year Asia Pacific and emerging markets equity funds responded positively to the more constructive tone taken by the US and Chinese presidents at the G20 meeting at the end of November but risks remain as the leaders of the world’s two largest economies each seek what they perceive to be the best arrangements for their domestic economies.

China remains at risk of both recession and currency devaluation – which would influence the prices it pays for oil and other commodities. We are therefore cautious and have recently added some exposure to India in our Growth and Aggressive portfolios.

Japan’s economy is gradually improving, and policy has been coherent and stable, but external risks and trade friction in Asia weighed on investor sentiment in 2018 leading to disappointing returns. Monetary policy remains expansive with the Central Bank continuing to buy both equities and bonds, but there have been some early signs of tapering this policy, which rattled markets throughout the summer and autumn. Employment and wage growth are coming through but increases in consumption taxes have weighed on some domestic companies and the funds which invest in them. Ultimately, if economic conditions continue to improve, so will profitability for these companies. Domestically focused Japanese companies are also not as tied to the Yen exchange rate as export focused companies. The Yen exchange rate has fluctuated a fair amount against the Pound in 2018, influencing returns for British investors in funds which do not use currency hedging.

This article is for information purposes only. It does not constitute investment advice and is not a recommendation for investment. The value of your investment and the income from them may go down as well as up and you could back less than you invested.

Latest news

Keep up with our latest news, views and market commentary

View All News

Politics in Play

The last three months have brought a series of political shocks ranging from on-going political manoeuvring around Brexit, US-China trade...

Looking to the future - long term investment themes

As you know from our regular updates, we keep a close eye on the economic and political outlook and how...

Keep Your Head (When All Around Are Losing Theirs)

It is easy to feel rattled with the continued political wrangling around Brexit in the UK, faltering trade talks between...

A Bumpy August

Equity markets proved volatile in August, especially at the beginning of the month.  Whilst the S&P 500 reached new highs...

The Boris Factor

The new Prime Minister has promised lower taxes, including cuts to income tax and stamp duty, and higher government spending,...

Market Update: Mixed Economic Data; Dividends Are the Sweet Spot

Global equity markets have made headway in the first half of 2019, the MSCI World index has advanced 19.6% in...

Woodford Equity Income and the benefits of Active Management

The benefits of our active management approach and the importance of having a well diversified portfolio with a number of...

Brexit Rumbles On

Political factors continue to influence the UK stock market, with the latest developments being the resignation of Prime Minister Theresa...

We would like to thank you for providing our clients with such a great service and always putting their needs first.
Samantha Private Client
I would like to give my appreciation for all the support and assistance that you have provided for me over the last 6 months.
Mrs S Miller Private Client
As soon we met you we felt in safe hands. You advised us on the state and worth of our current pensions clearly and simply.
Sean & Lisa Private Client