MCP : Martin Currie Pacific underperforms in transitional period
Martin Currie Pacific said the MSCI Asia ex Japan index rose by 8.65% over the six months that ended on 30 September while the company’s NAV on a total return basis increased by 6.69% and the share price by 10.52%. The company changed its mandate during the period and this clouds an analysis of what went wrong and right.
They say that before the change the top-performing stock (based on contribution to returns) was Dongfeng Motor Group. All three of the Chinese state-owned automobile manufacturers’ joint venture partners launched a steady stream of new models. Whilst the worst performer was airbag manufacturer Takata which was forced to recall a number of airbags.
Post the change, Maruti Suzuki led the field (in absolute returns). They say the underlying fundamentals for the Indian car maker remain compelling.