Following the euphoria of the Chinese A shares market in 2015 Asian markets have now fallen around 25%. Kevin Bertoli from PM Capital says that markets are now starting to factor in the transition away from fixed asset investment towards a consumption led economy.
“If you look at the valuation of the MSCI Asia (ex Japan & China) it’s at the cheapest point in the last 15 years. We think this is a great time for investors to relook at Asia but look at Asia for the next decade.”
Bertoli says capital outflows from the region have been indiscriminate, putting high quality businesses on sale at attractive valuations. In this video he explains one of the largest themes in his portfolio and the companies he says are well placed in this market.
Watch the video here: