Thursday, August 28, 2008

Investors urged to buy and hold


Investors urged to 'buy and hold'


Penazola: Asia faces multiple headwinds

Investors should take advantage of the sharp declines in the market this year and adopt a long-term, ''buy-and-hold'' strategy, according to Aberdeen Asset Management.

The fund manager yesterday launched its new ''Pearls of Wisdom'' education campaign with partners HSBC, Phatra Securities, Standard Chartered and Citi.

Robert Penazola, the Aberdeen chief executive, said the campaign reflected the company's philosophy to focus on fundamentally sound companies.

The campaign, which starts next month, will include seminars and roadshows citing examples of prominent investors who counsel patience over panic at times of market stress, he said.

Mr Penazola said Asian stock markets were facing ''multiple headwinds'', and that it was difficult to make progress this year.

Political uncertainties and economic volatility would remain key risk factors for the near future.

While it was difficult to predict how low the market could fall, for long-term investors, equity would continue to outperform other asset classes, Mr Penazola said.

Since the beginning of the year, the Stock Exchange of Thailand has fallen over 21%, and closed yesterday down 9.28 points at 668.92 in thin trade.

''Over a one-year period, as well as over longer periods of 3-5 years, the performance of Aberdeen's equity fund has been very good,'' Mr Penazola said.

He cited the Aberdeen Growth Fund's 27.5% return over three years compared with just 1.4% for the SET.

Over five years, the fund is up 97.1% compared with 41.3% for the SET. Even on a one-year basis, the Aberdeen Growth Fund has outperformed the market, with a -16.3% return compared with a -20.6% decline for the SET.

''At Aberdeen we keep things simple. We invest in great businesses at sensible prices and look for consistent returns over the long term,'' Mr Penazola said.

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