The WAY Group Newsletter for Financial Advisers | January 2012

"The Big Question: What are your top investment calls for China in 2012?"

Infrastructure...

Gabrielle Knights, Investment Manager of the WAY Asian Spice Portfolio Fund

Gabrielle Knights, Investment Manager of the WAY Asian Spice Portfolio Fund discusses the growing infrastructure opportunities for investment in China in 2012...

The Big Question:

"What are your top investment calls for China in 2012?"

"Infrastructure machinery plays - to maintain reasonable GDP growth in 2012, China will need to invest more on infrastructure amid weakening exports and a slow residential property market."

"China targets to improve its urbanisation rate - from 47.5% at end-2010 to 51.5% by end-2015, implying that at least 52 million rural labourers would need to be transferred to urban areas even if the size of the total population remains the same and therefore, longer term, the potential for the expansion of construction machinery fleet size is huge."

"Water treatment - In the 12th Five-Year Plan (2011-16), the Government pledged to invest RMB2trn in the water sector. In 2011, demands were made for higher tariffs and for officials to be liable for water pollution. The Ministry of Finance said local governments must allocate 10% of proceeds from land disposal on water resource projects."

"Consumption - the government's long-term goal is to restructure the economy so that a larger proportion of growth is generated by domestic consumption. Social housing, increased welfare and greater urbanisation all generate higher disposable income. Monetary policy was tightened in 2011 to combat rising inflation. We expect policy to be looser in 2012, encouraging more personal spending."

"Policy - we expect policy to be looser in 2012, encouraging more personal spending."

References:
Data & Statistics - WAY Investment Managers Limited

Please Note:
The above comments first appeared in a feature article published in Investment Week on 20th January 2012. Reproduced with kind permission.

– Ends –

Associated links:

For further details: the WAY Asian Spice Portfolio Fund

For further details: the WAY Specialist range of funds

For further details: WAY Investment Managers Limited

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Please Note:
This document has been prepared for Financial Intermediary Clients and Professional Associates of WAY Investment Services Ltd and is not intended for and must not be distributed to Private Investors. This document does not constitute investment advice. Services referred to in this document may not be suitable for every investor and if in doubt independent financial advice should be sought. No representation or warranty is given (express or implied) as to the accuracy, completeness or correctness of the information nor the opinions, interpretations and conclusions contained in this document. No liability is accepted whatsoever for any loss howsoever arising from any information in this document subject to the rules of the Financial Services Authority or the Financial Services and Markets Act 2000. Past performance is not necessarily a guide to future returns and changes in rates of exchange between currencies may cause the value of investments to rise or fall. Share prices, values and income can go down as well as up and investors may get back less than their initial investment. WAY Investment Services Ltd is an Appointed Representative of WAY Fund Managers Ltd which is authorised and regulated by the Financial Services Authority.

The WAY Group Newsletter for Financial Advisers | January 2012