Schroders' Dobbs underweights financials on interest rate fears

Schroders' Matthew Dobbs is 6% underweight in financials in the group's £84m Asian Alpha Plus fund as the manager attempts to safeguard against rising interest rates in China.

Dobbs added he is unconcerned over EMs becoming overheated and said core-inflationary pressures in the regions are not abnormally high. The manager said he is looking to profit from rising inflation levels across Asia and has built up a 6% overweight position in industrials as he shifts money towards holdings with a greater emphasis on exports. “Inflationary pressures have been rising throughout Asia with soaring commodity prices and wages putting upward pressure on interest rates,” says Dobbs. “Most Asian currencies remain behind the curve and although global monetary policy will ...