Asia Small Companies now available as Australian Investment Trust
Tamim Asset Management launches the Asia Small Companies strategy as a wholesale Australian investment trust managed by the API Capital investment team.
We believe Asian smaller companies offer high return potential for investors. The increasing variety and number of companies from which to choose, the innovations being commercialised and the low valuation at which they are priced all mean that smaller companies likely represent a very profitable investment for investors with a multi-year horizon.
As we move toward the end of the ultra-low interest rate era it is likely that more fiscal stimulus will have to be provided to maintain and rebalance global growth. Asia is not without its imbalances and policy weaknesses, but it does have fiscal, demographic and execution advantages not available to many other ‘western’ regions. Consequently, the risk return trade-off from investing in the Asia region currently looks very attractive.
In Asia, high levels of corporate, personal, and government savings mean that there is now plenty of ‘fiscal ammunition’ to be deployed in the promotion of domestic expenditure in the event of an economic slowdown in the USA and Europe.
This provides a safety valve not clearly available in Europe, the USA and emerging markets such as Brazil and South Africa, where fiscal policy is more constrained and/or equity prices are generally on higher multiples of earnings.
The Asia Small Companies strategy also invests in Japanese smaller companies. The sheer size, variety and innovation of companies in this country will be a significant weight and a distinguishing feature compared with other Asia strategies currently available.
Having some exposure to Asian smaller companies is beneficial for Australian based investors’ risk and return and some exposure should be held in addition to global large cap equities.
Tamim Asset Management have launched this strategy as a wholesale fund based in Australia. API Capital are the sub-advisor and responsible for portfolio management and trade execution.
For more information contact us or click here to find out more and speak to Tamim about investing in the Fund.