Potential of materials sector in the Far East

Nigel Bliss, Senior Portfolio Manager of the Lincoln Far East Trust at Mondrian Investment Partners comments on potential opportunities in the materials sector: "Over the past 12 months we have seen an uplift in the materials sector and specifically mining stocks have experienced considerably higher returns than other stocks.

There has also been a divergence of returns particularly within the materials sector, but also evident in other sectors, which presents a potential opportunity for investors. We believe that commodity related companies' share prices do not reflect the weaker global economic outlook, but within the processed materials area some companies, especially those providing building materials, are becoming attractive.

In addition, whilst the operating environment for many financial companies will be increasingly difficult in the near term, those with strong capital positions and those in less affected areas, such as the Far East, potentially offer attractive value with less risk and may furthermore be in a position to act as consolidators in their markets."

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