China manager Charlie Awdry has increased exposure to property companies and state-owned businesses on the view they will perform strongly given recent economic tailwinds.
The manager of the £398.4m Henderson China Opportunities fund said improving macroeconomic data and the continutation of economic and political reforms means the country offers interesting opportunities and the “economy is through its softest patch.”
He has taken the opportunity to buy “unfashionable and cheap shares” from the country.
Chinese property companies, in spite of having negative news flow, are benefiting from policy reform, the manager said.
State-owned businesses, which are cheap and sometimes viewed as not being the best managed, are offering opportunities and have been performing very strongly in July, said Mr Awdry
The manager’s fund has returned 9.1 per cent in the past year compared with the IMA China/Greater China sector average of 3.8 per cent, according to Morningstar.
