Mar 25 - Invesco's Lipper Award-winning Steve Cao is finding opportunities in smaller Asian countries like Thailand and Indonesia and says a slowdown in China is the region's biggest risk to investment.
We're -- Houston office here in Texas to talk with Lipper award winning fund manager Steve cow. He manages invesco Asia Pacific growth -- very good to chat with you. Okay where is the big growth opportunity in Asia this year do you think. I think we. Or wait it. Several small smaller markets in South Asia such -- Thailand Philippines I -- of these yet. Aaron it would still alive. Names there I think these markets. Have been ignored -- masters. And we need to find high quality companies. I attractive valuations. So it makes me wonder then where you are in terms of China and how worrisome slowdown of growth. There it tends. Right we have been finding a more attractive. Opportunities in China these states -- high enough in underperformed for several years. We start to see more attractive valuations still have been acting oddly these positions in China. And buying new things in time. -- is their particular sector focused you're taking in China some industries that nature. Goals a little bit more so than other industries. Not earlier today you know we are all come -- -- stocks and the key focus all our investment process. It's. Focusing on quality. High quality -- Earnings and cash finally gotten region. What is it you think it -- serve management style apart from some of your peers that enables you to. Com with another award from -- Sure. The key is already investment strategy and our next in the process. And that in the key focus is on. Owning -- high quality companies and invest for the long term. And it. Well sole goal -- harmful stocks are less travel. Which news we basking small packs -- -- tax. Which are not recognized. And also wing -- in. Smoke cattle -- -- in markets that has not been. Recognized or hats or or in sectors that has been ignored by the market players probably -- so go we. You expecting next to me sought peace in Asian markets smaller market like -- and that you know he says that he can use the regulation the very attractive simply because. The attention. No loss but laughter popularly what markets in China and India so when you look at some of the smaller countries. And the prospects there can't have growth. Prospects are there for the individual. Names community's going to be the Al performers if so are we talking double returns for the individual stocks are high single digits right. Well its premiere date. Are coming down to -- to be -- company's fundamentals. For example. Catch a -- to -- -- only in the only -- in May not have an -- possible. The stock up talk about that is peak acts. It does not have a robust growth because -- utility company but we do -- bikers staple. Cash for most means and company pace they put the dividend so its good capital generation a quilting dividend which we have Michael -- innings at another company. What is another company's payback it's pretty Thailand commercial bank. This week alone for two years already and it's a commercial banking and -- and had a strong deposit franchise. And it's. -- call -- politics of racial he's the highest in the country which news. They have a low funding cost and also that management has been growing -- conservative they I've been able to control credit rates. It generate earnings. And also increased dividend in past three years and these bank has been increasing book back to eight the year you POP3 years. So best to stop I think one of cult and holdings we still like it. What's the biggest risk factor right now in investing in the Asia Pacific region. I think it's the slowdown in the trying to. And that could that post crisis. I think trying to slow down from 10% to 8% 7%. I think it could slow enough for the slow down from here at the economy is rebounding thing that the economy from investment to consumption. So I think we if they slow down to 6% who will call negative surprises. -- -- that's -- don't think so much and if I brought out there this is writers.