M&G's Andrew snaps up 'cheapest equity market' in the world

M&G's Steven Andrew has moved to invest in Chinese equities in his Episode Income fund after labelling the region the cheapest equity market.

Andrew, running the £120m fund since its launch in November 2010, said Chinese equities now looked the cheapest in terms of valuations of all major equity markets. "The Chinese market has continued to underperform and is substantially cheaper - in terms of earnings vs share prices - than any other equity market I would like to be invested in," he said. While the Chinese equity market has declined over the last three years, other major markets have made headway. The S&P 500 is up over 20% in the last three years, while the FTSE 100 is up nearly 10%. Andrew has taken a 2% position...