Top Philippine Fund Keeps Cash as Valuations Clash With China
- Philippine stock gauge entered bear market on Monday
- Foreign funds sell $20.8 million of shares this week
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The Philippines’ top fund manager is staying with cash as the cheapest shares in three years aren’t attractive enough to ease his anxiety over China’s economy and stock-market rout.
Smith Chua, who manages four out of the five best-performing Philippine equity funds over the past two years as chief investment officer at Bank of the Philippine Islands, said his cash holding is the same as August and September when it doubled from the start of 2015 as the volatile environment in China makes it difficult for him to invest. Chinese stocks headed for a bear market on Thursday, while government bond yields plunged to a record.