China’s Cheap Stocks Tempt $101 Billion Australia Pension Fund

(Bloomberg) — Colonial First State (CFS) is eyeing discounted China securities as it seeks to lift its emerging markets exposure to diversify its portfolio.

Chief Investment Officer Jonathan Armitage is looking to boost the developing markets exposure by around 2-3% at the firm where he oversees A$150 billion ($101 billion) in pensions and wealth. Along with China, Korea and Taiwan also have valuations that are “attractive relative to U.S. equities,” he said.