M&G's Godfrey focusing on headline Asian growth story

Investors must look beyond the headline Asian growth story and understand where companies are puttin...

Investors must look beyond the headline Asian growth story and understand where companies are putting their excess cashflows, according to M&G Asian manager Michael Godfrey. He claimed investors continually overpay for growth and, while Asian companies have had ample opportunities to grow over the past decade, they have not necessarily performed well. "The growth story does create problems. If you grow badly, you can destroy return on capital; if you grow well, you can create tremendous amounts of value," he said. "The companies themselves have not always known how to grow. They have ...