Terry Smith: I'm Sceptical on China

Emerging market equity investor Terry Smith has a low exposure to China equities as he is worried over the effect of China policy outcome and its local retail businesses

Karen Kwok 21 April, 2016 | 2:08PM
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Emerging market investor Terry Smith has expressed worries over Chinese government policy and its effect on retail businesses, leading to an underweight position in his Fundsmith Emerging Equities Trust (FEET).

Although the emerging markets trust lost 11% in 2015, Smith remains confident it will outperform Fundsmith Equity over 10 years

“We are still sceptical about the policy outcomes implemented by the Chinese government,” Smith said at a panel hosted by Frostrow Capital this week, adding that he thought many businesses in China were “not very well run”. However, Smith said that he has been looking to increase his allocation to China in his portfolio, especially in the travel sector.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Fundsmith Emerging Equities Trust1,270.00 GBP-1.36Rating
Fundsmith Equity R Acc5.39 GBP-0.06Rating
Marico Ltd468.75 INR0.00
Trip.com Group Ltd ADR36.13 USD0.00Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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