...have just been issued (after hours): http://fool.uk-wire.com/Article.aspx?id=201103281634337657D
Worthwhile reading for those interested in emerging markets:
The steady progress of smaller companies in the region, buttressed by strong balance sheets and solid profitability, underlines Asia's rising economic significance, drawing a sharp contrast with the outlook for the West.
Asian economic growth continues apace: China posted full-year GDP growth of 10.3%, overtaking Japan as the world's second largest economy. Singapore's economy continued to expand at a fast pace as well; the city-state expanded at a record pace of 14.5% in 2010, one of the fastest growth rates in the world. But economic recovery has resulted in inflationary pressures building: prices for commodities and food, in particular, have risen sharply.
In turn, policy tightening became a priority for several countries in the region, owing to fears of asset bubbles amid liquidity inflows. Hong Kong and Singapore took fresh steps to rein in property speculation, while Thailand reintroduced a tax on foreign holdings of local bonds. Most central banks hiked interest rates, while those in China and Indonesia lifted lenders' reserve requirements more than once. In a sign of increasing exchange-rate flexibility, Beijing set the yuan's reference rate at a new high against the US dollar and indicated it will allow foreign lenders to invest in the domestic interbank bond market, beginning the process of currency internationalisation. With China's rapidly increasing global influence, its policy changes are taking on greater and greater significance for investors both within and outside the region...
...With corporate profits forecast to rise by around 10% in 2011 and valuations reasonable at around 14 times prospective earnings, the medium-term outlook for our portfolio is positive.
One caveat remains and that is a macroeconomic one, not stock specific. As inflationary pressures intensify, central banks are likely to be forced to tighten further which could weigh on investor sentiment and pare market gains in the short-term. Indeed over recent weeks we have seen stockmarkets retreat, aided by uncertainty in the Arab world and the natural disaster in Japan. We view this more philosophically and in a broader context as a healthy pullback after a long period of strong performance. The Board and I maintain our confidence in Asia's long-term macroeconomic prospects as well as in your Manager's intensive research-driven process to capitalise on opportunities within the small and mid-cap investment universe...
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