This news service visited Paris recently to meet a number of wealth and investment managers to discuss their asset allocation views. Edmund Shing at BNP Paribas Wealth Management has a favourable stance on the outlook for emerging market equities, the US, driven by tech, and Japan.

In line with a number of firms, Edmund Shing (pictured) at BNP Paribas Wealth Management is positive on the outlook for emerging market, US and Japanese equities.

“We are still very bullish on emerging markets, mostly in tech. In particular, we like South Korea, Taiwan, Latin America, as well as central and eastern European countries like Poland,” he told this news service in an interview.

Paris-based asset manager Carmignac, as well as several other firms, also remains upbeat on undervalued tech-driven emerging markets and Japan.

“We like China but it is still lagging behind other markets. I think it is a great long-term story with promising potential,” Shing continued, arguing that the country is ahead on the energy transition. While China still relies on fossil fuels, it produces more than 80 per cent of all solar photovoltaic panels, half of the world’s leading electric vehicles and a third of its wind power. “However, there is still a huge problem on domestic consumption,” he said. “It is not consuming enough.” But he noted that on AI and tech, it is catching up with the US.  

Shing is bullish on electric vehicle technology and on infrastructure for the energy transition. After the joint US-Israeli attacks on Iran sparked a conflict causing oil prices to surge, he highlighted the importance of the energy transition, nuclear energy and the need to not to rely on fossil fuels.

In Korea, which saw a big correction in July, Shing said demand is continuing to increase for memory chips. “We were neutral on emerging market equities but we have increased our exposure there to overweight, notably in Korea where we invest in Samsung Electronics. We also invest in Taiwan Semiconductor Manufacturing Company TSMC,” he said. He also invests in industrial precious metals in Latin America, notably Brazil.  

With regard to sectors, Shing likes tech, mining, healthcare, and commodities. Silver, copper and tin are needed for artificial intelligence, tech and renewables. He is bullish on copper and remains positive on copper, aluminium and zinc. He is also positive on gold, although he does not have as much exposure there due to the recent volatility; he has increased his exposure to precious metals. He is bullish on infrastructure and likes defence in Europe. With regard to the latter, he is invested in eight to nine companies including the European aerospace and defence company Airbus as well as BAE Systems, a British multinational defence, security and aerospace company.

Shing is overweight on equities and believes that their resilience has been remarkable. He likes emerging markets and Japan, in particular, and is overweight there. He has just moved from neutral to overweight on US equities and has moved to positive on the global tech sector and likes healthcare. He is underweight on European equities, and does not have much exposure to French luxury goods which haven’t done as well recently.

Along with a number of firms such as Orbis Investments, he says UK stocks remain undervalued and have outperformed; he invests, for instance, in the UK’s pharmaceutical company Astra Zeneca. “UK bonds could also be an excellent investment but we will see what happens in the Autumn budget at the end of the month,” he added.

He is doing more on exchanged-traded funds (ETF) and plans to increase the active ETF range.  A number of firms have been continuing their expansion into ETFs such as Schroders, Pictet Asset Management, Invesco, and Franklin Templeton. See more here and here.

Shing remains fairly positive on the outlook, notably on equities, AI and tech, as well as gold.