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Fidelity investment director, Catherine Yeung, defends the large overweight position to China in the $10 billion (£6.5 billion) Fidelity South East Asia portfolio. Citing the the growth in domestic consumption as a key reason to be positive on the economy, Yeung explains how she believes the fund can bounce back over the next few months, against a backdrop of concerns over China's much talked of slow down.
One of the top performing asian investments over the long-term, the fund has suffered a rare bout of underperformance over the last two years, lagging the sharply rising market in the second half of last year. Yeung believes Allan Liu's favoured quality names suffered, with value stocks prospering, but are now due for a positive re-rating.
Liu is also finding attractive opportunities in Thailand and Indonesia, and views the latter in particular, as an exciting long term growth story still at a relatively early stage.