LF Canlife Asia Pacific Fund Update

tensions ease

BY KIM LEE, SENIOR FUND MANAGER

Despite some volatility, Asian equities performed strongly in sterling terms in April, with India a strong performer. This was the result of the market recovering somewhat following a period of weakness. This was beneficial for the Fund.  Elsewhere, we saw strength in Hong Kong and Singapore, most notably in the financials space.

However, the biggest news in the region was the historic crossing of North Korean President Kim Jong-un into South Korea to meet with his South Korean counterpart Moon Jae-in. The two announced plans to end the Korean War and pursue denuclearisation, which would be a big positive for the region across a wide range industries. Further positive news also came from China, as both President Xi Jinping and People’s Bank of China governor Yi Gang spoke about opening up the Chinese market at the Boao Forum.

We are pleased that dialogue between China and the US in particular appears constructive and we will continue to monitor this China’s dialogue, as well as keep a close eye on the Korean peninsula. Outside of the macroeconomic and political spheres, the fundamental growth outlook for Asian equities remains compelling, particularly on the domestic front. For example the Fund retains significant exposure to the consumption story in China, where there are a number of exciting stock-specific opportunities, such as hypermarket operator Sun Art Retail.

Important Information

Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Currency fluctuations can also affect performance. Due to the underlying assets held, the price of the Fund is classed as having above average to high volatility.

The information contained in this document is provided for use by investment professionals and is not for onward distribution to, or to be relied upon by, retail investors. No guarantee, warranty or representation (express or implied) is given as to the document’s accuracy or completeness. The views expressed in this document are those of the fund manager at the time of publication and should not be taken as advice, a forecast or a recommendation to buy or sell securities. These views are subject to change at any time without notice. This document is issued for information only by Canada Life Investments. This document does not constitute a direct offer to anyone, or a solicitation by anyone, to subscribe for shares or buy units in fund(s). Subscription for shares and buying units in the fund(s) must only be made on the basis of the latest Prospectus and the Key Investor Information Document (KIID) available at www.canadalifeinvestments.com.

Canada Life Investments is the brand for investment management activities undertaken by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Canada Life Asset Management Limited (no. 03846821), Canada Life Limited (no.00973271) and Canada Life European Real Estate Limited (no. 03846823) are all registered in England and the registered office for all three entities is Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Asset Management is authorised and regulated by the Financial Conduct Authority. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

CLI01202 Expiry on 15 August 2018

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