Hermes: Why Asian investors need negative headlines

Jonathan Pines, manager of the Hermes Asia ex Japan fund, has said negative newsflow is now needed in Asia to drive down valuations and create buying opportunities.

Pines, whose fund has outperformed the wider Asia ex-Japan peer group since launching the fund in late 2012, said further selling now by investors would leave a wide range of shares looking attractive. This negative trend is already having a positive impact on some regions, he said. He noted China in particular, one of the biggest country allocations in the £290m fund with a 10% overweight relative to the MSCI AC Asia ex Japan benchmark, is an area where negative newsflow of late had created some decent buying opps. This positioning reflects the manager's positive view on the Chine...