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Sunday, 16 October 2011

Will euro crisis sink your Asia fund?

Is the euro typhoon heading for Asia? Figures from the Investment Management Association (IMA) show that private investors have put their faith in the China, India and their environs for some time now, but warnings from the International Monetary Fund (IMF) suggest that the Eastern promise might be waning thanks to the euro turmoil.
Over the past five years, according to IMA figures, net retail sales of Asia Pacific funds excluding Japan were £2.1bn, compared to just £27m from UK All Companies funds. "Everybody loves Asia as a long-term growth story," said Rob Burdett, the co-head of Thames River's Multi-Capital fund.
However, he acknowledged that these markets were not likely to emerge unscathed from the current problems in the eurozone. Having already underperformed over the past year, he said Asian markets would "move with global growth perceptions whether we like it or not".    Read Full

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