SLI GARS sees 'catch-up' potential in South Korea

Market valuations at ten-year low

The management of the Standard Life Investments' £24bn Global Absolute Return Strategies fund (GARS) has taken positions to benefit from the "compelling opportunities" in South Korea, which they believe will play "catch up" after five years of poor returns.

The team, led by head of multi-asset Guy Stern, said they expected South Korea, the 15th largest world economy, to benefit from an expected structural slowdown in trading activity between Asia and China. There is also robust demand for Korean exports, accelerated corporate earnings and increased earning forecasts for the first time in five years.  The team said:"South Korea's record of sustainable development offers a showcase for other developing economies. The country boasts many world-class businesses including Samsung, Hyundai, LG and Kia Motors. Exports account for over 50% of go...