About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Wednesday, September 2nd, 9:39AM
rss
Latest Headlines

Beauty in the eye of the beholder

To most investors and fund managers Japan isn't very attractive at the moment. But BT Funds Managemenet can see something it likes.

Wednesday, June 27th 2001, 10:29PM

by Philip Macalister

The Japanese economy is such a basket case that not many investors would consider putting their money into that market.

Not so for BT Funds Management. Currently it is hot on Japan and Asia as an investment destination, as opposed to the United States and Europe.

BT chief investment officer Craig Stobo admits that at a macro level Japan is not very appealing - after all it is going through its fourth recession in 11 years.

However, the view at a micro, or company, level is quite different.

He says there are a number of companies that are doing very well.

These tend to be companies that have benefited from foreign direct investment. An example of this is Nissan, which is now owned by French car maker Renault.

Besides buying the business, the French company has brought in its own management and is making the company far more efficient than it was under more traditional Japanese management.

"Foreigners are coming in taking over companies and driving down costs. This is providing huge benefits to a small number of Japanese companies."

Stobo warns that this is not happening across all Japan: "There are still some real dinosaurs."

Therefore it is a market which suits a bottom-up, stock picking manager such as BT.

He sums up Japan by saying that the macro economy remains weak, and structural problems abound. However, there are promising signs from the Government and corporate reform is driving structural improvements in profitability.

While BT is keen on Japan and the Asia Pacific regions, its overweightings to those areas is minor at around about 1% each.

Stobo says BT's allocations on a regional basis aren't too far out from the benchmark because there is a synchronised worldwide economic slowdown - no country is experiencing strong economic growth.

On a sectorial basis BT is keen on consumer discretionary area, healthcare, industrials and information technology.

Stobo predicts that although economies are slowing down consumers will continue to spend, hence the consumer discretionary sector which includes things like whiteware will prosper. Technology advancements and demographic changes will underpin healthcare and IT.

BT is underweight in defensive sectors such as financials (banks and insurance companies) and utilities.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« Dorchester continues to growSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Funds for fee-conscious customers
    “Whilst the Investment Series fees look high, they too are fully inclusive of all underlying fund and product manager fees...”
    24 hours ago by DavidBeattie
  • Appetite for annuities
    “I wouldn’t put too much faith in the purported outcome of any survey from the Commission for Financial Capability. If...”
    1 day ago by Brent Sheather
  • nib plots more growth
    “Hi 'T", We have listened to Advisers and have a migration pathway for many customers. We will work wiith you to find the...”
    2 days ago by Rob Hennin@nib
  • nib plots more growth
    “Hi Rob, Hope changes mean clients stuck in old closed groups or products where the loss ratio only goes one way because you...”
    2 days ago by T
  • Former Mike Pero broker banned
    “I was always told that RoT's weren't worth the paper they're written on. Sounds like the Pero contracts are very tough,...”
    2 days ago by Dirty Harry
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 6.24 5.10 5.25 5.59
ANZ Special - 4.69 4.89 -
ASB Bank 6.50 5.05 5.25 5.35
ASB Bank Special - 4.69 4.89 4.99
BankDirect 6.50 5.05 5.25 5.35
BankDirect Special - 4.69 4.89 4.99
BNZ - Mortgage One 6.65 - - -
BNZ - Rapid Repay 6.24 - - -
BNZ - Special - 4.69 4.69 -
BNZ - Std, FlyBuys 6.24 5.09 5.09 5.19
BNZ - TotalMoney 5.99 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 6.45 5.75 5.75 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
HBS Bank 6.14 5.39 5.39 5.39
HBS Special - 4.69 4.69 4.99
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 6.45 5.10 5.40 -
Housing NZ Corp 6.49 5.19 5.49 5.59
Lender Flt 1yr 2yr 3yr
HSBC Premier 6.60 4.89 4.89 4.99
HSBC Premier LVR > 80% - - - -
HSBC Special - 4.49 4.49 4.49
ICBC 6.75 5.99 6.39 -
Kiwibank 6.15 4.79 5.49 5.69
Kiwibank - Capped - - - -
Kiwibank - Offset 6.40 - - -
Kiwibank Special - 5.09 4.65 4.99
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.70 5.65 5.95 -
Lender Flt 1yr 2yr 3yr
NZ Home Loans 6.60 5.39 5.49 6.29
Perpetual Trust 7.70 - - -
Resimac 5.59 5.37 5.40 5.52
SBS Bank 6.14 5.39 5.39 5.39
SBS Bank Special - 4.69 4.69 4.99
Sovereign 6.35 5.05 5.25 5.35
Sovereign Special - 4.69 4.89 4.99
The Co-operative Bank 6.20 4.69 4.79 4.99
TSB Bank 6.24 5.10 5.39 5.45
TSB Special - 4.69 4.69 4.99
Wairarapa Building Society 6.20 5.75 5.95 -
Lender Flt 1yr 2yr 3yr
Westpac 6.15 4.99 5.19 5.19
Westpac - Capped rates - 6.15 6.15 -
Westpac - Offset 6.15 - - -
Westpac Special - - 4.69 -
Median 6.40 5.09 5.25 5.35

Last updated: 18 August 2015 3:39pm

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com