Aberdeen Asian Equities: Growth and re-investment


after a very strong run last year there

has been enough uncertainties

particularly with respect to the macro

environment we with it politics or with

trade tensions are rising tensions with

the US and within the region we've also

had very different performances across

markets what's been really positive

about markets really the numbers coming

out of the corporates are where we

continue to see robust earnings growth

we continue to see investment

opportunities for the companies that

operate within Asia I think that bodes

very well when you look at balance

sheets they have remained very robust

some of the larger companies BT SMC or

Samsung Electronics have substantial

amount of cash on the balance sheet

which will allow them to continue to

reinvest when you look at the mainland

Chinese companies many of them are a lot

more sophisticated with with managing

the balance sheets and no longer have a

substantial US dollar exposure that

leads them to vulnerability should the

currency move substantially if you're

looking at the economic profile Asia is

one of the few regions know all that

continue to post growth in excess of six

percent you have that in Indonesia China

and India secondly when you're looking

at the demographic profile you have some

of the most populous countries also in

Asia and if you look at India and

Indonesia particularly a substantial

portion of the population remains below

the age of 27 so you have very

attractive demographics thirdly when

you're looking at the companies in Asia

they continue to find very attractive

investment opportunities within their

countries so they're not looking to buy

back starts or to return access to cash

to shareholders because they're better

returns to be had from reinvesting and I

think that these are extremely good

propositions for Asia over the longer