Why cash levels have shot up at Schroder AsiaPacific
Matthew Dobbs, the manager of Schroder AsiaPacific (SDP), has increased the fund’s cash levels to their highest level for at least a decade according to investment bank Stifel.
While Dobbs acknowledges Asian markets are modestly cheap, he is concerned about the weak growth outlook and the scope
for the US-China trade spat to spin out of control.
Since late 2018, Dobbs has moved the portfolio from a modestly geared position to 5% net cash as at 30 April while dialling down the China and Korea exposure.
Stifel believes Dobbs’ 30 years of experience of Asian markets investing ‘will be invaluable to navigate these changing markets’.