Asia continues to offer significant structural advantages in terms of growth potential over the longer term, but there are short-term headwinds that need to be factored into investment decision making. Asian companies are faced with three key global trends which will impact the landscape: demographics, deflation and disruption. Our preferred areas for investment are companies with strong cashflows and, in this low earnings growth environment, low cost producers that also have a flexible cost base and we continue to like companies that are able to tap into the growing trend of urbanisation and the rise of the middle class. We explore this further in “Talking Point: Outlook 2016: Asia ex Japan Equities” (VIEW LINK)
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