Credit Suisse takes a dive into Asia

Credit Suisse Asset Management (CSAM)has made a move into the depressed Asian equities market, launching an Asia ex Japan fund for Australian investors at what it claims is an opportune time.

CSAM head of retail funds Brian Thomas says the Asian economy has been effected by the SARS crisis, giving the market short-term potential, while long term potential for growth in the region is also strong. He says this combination makes it a good time to invest in Asian fund.

“We have also been managing Asian equities for the group globally, and we thought quite simply, if we have the capabilities and track record, why not make them available to the Australian market place,” Thomas says.

CSAM head of Asian equities Peter Sartori agrees, saying the fund gives investors the opportunity to invest in long-term Asian economic growth potential at a time when market valuations are at historical lows.

“Earnings growth is relatively healthy in Asia, corporate fundamentals are improving and valuations are at historical lows,” Sartori says.

“In addition, there is a growing dividend story in the region as companies pay out more earnings to shareholders.”

Sartori says CSAM have picked a team of investment professionals from Hong Kong, Singapore and Sydney to manage the fund.

“We are active bottom-up stock pickers focusing on high quality companies with good growth prospects. At the moment we are able to find many Asian companies that fit our investment criteria,” he says.

The wholesale Asia ex Japan fund will be available to retail investors through master trusts and wraps from 2 June 2003, with Macquarie having already indicated it would add the product.