This portfolio gives investment exposure to top companies in both India, Hong Kong and China (through Hang Seng Index of Hong Kong).
The Hang Seng Index comprises some major growth companies operating in the far-east in the areas of Energy, Technology and Real Estate. Many companies of the Hang Seng Index are expanding in mainland China and therefore, this portfolio gives you investment plus diversification into two of the most attractive investment destinations at a global level.
This portfolio has an extra weight on: (a) Indian Banking industry and (b) High-demand commodities in Asia-Pacific region like iron ore, coking coal, steel — both of which we believe will see major growth in both earnings and market cap in the next 5 years.
This extra weight means the portfolio will underperform if the economy remains weak, but it will help the portfolio deliver outperform the market benchmarks as soon as the global economy shows sustained recovery, which is likely by 2015, 7 years after the crash of 2008.
