Skandia Investment Group is considering launching another single-manager Asia fund and adding new mandates to its £1 billion Global Dynamic product.
MIR Investment Management, which already runs an aggressive Asian mandate for the Global Dynamic fund, could manage a similar mandate for Skandia as a single-manager fund.
François Zagamé, the co-manager of the Global Dynamic fund, says MIR has performed well on the fund in combination with First State Investments, Global Dynamic’s defensive Asian manager.
Zagamé is also considering whether to add Japanese, Asian consumer and American or European mid-cap mandates to the vehicle.
However, he says he is wary of timing any entry into the markets. (article continues below)
On the mid-cap side, Zagamé says he is aware of the possible contagion from eurozone woes and any damage that could do to risky assets.
He also points out a number of Asian consumer stocks look expensive and calling Japan in particular has proved problematic over the last two decades.
Zagamé took a neutral view on Japan earlier this year after economic difficulties caused the stock market to plunge.
On a tactical basis, he is broadly overweight Asia and underweight developed markets. He says recent moves to tighten policy in China are a positive as they make its growth more sustainable.
However, GLG Partners warned yesterday of the impact this could have on Shanghai stocks in particular.
Any policy tightening in China might cause medium-term stability. But in the short-term it should slow the money flooding China and other Asian economies which benefit from its growth.