Both Loomis Sayles and Fidelity are backing up their views with cold hard cash. Eagan’s fund has been buying more bonds of distressed developer Sunac China Holdings Ltd., while one of Fidelity’s multi-asset funds managed in Singapore recently added a small position in China state-owned developer shares.
Global fund giant Loomis Sayles & Co. is turning more positive on China’s battered real estate sector, saying recent debt restructuring arrangements are bearing fruit and improved sentiment may result in a faster-than-expected bounceback.
Investors who wait too long may miss out on the rebound, according to Matt Eagan, a fund manager at Boston-based Loomis Sayles, which oversees US$303 billion ($402.74 billion). Fellow asset manager Fidelity International also senses an opportunity, saying history shows investing in the surviving developers of a housing downturn can be very profitable.
