He is underweight China's H-share market, as he explained: "Basically H-shares do not have a local investor base to fill the void of foreigners."
Hence, Matthews said he expects H-shares, which have done very well this year to "underperform going forward because the local Hong Kong people don't usually buy the Chinese stocks listed here."
Matthews also favored companies that provide good yields and has allocated about half his portfolio for such stocks.
"Markets have gone up a lot so I do want to have some yield stocks," he explained. "If I were to just throw one idea at you, I think the Philippine telecom companies are vey good oligopolistic businesses. 11 times P/E is what you're paying for PLDT, or Globe for 8 percent dividend yield. The Philippine market itself is on 15 times, so they're certainly at a discount."
Philip Niem, head of Asian discretionary portfolio management at Barclays Wealth, said to go for a diversified portfolio of quality Asian stocks to secure returns over a three-year time frame.
Good Value in China Properties
Niem, who continued to be positive about equities, said he likes Chinese property plays as he believes the sector offers value after its recent sharp correction.
"We do believe that from a fundamental consideration... the Chinese property sector will be quite key to the growth of domestic demand within the PRC. We do see policies unlikely to become very unfavourable any time soon. Furthermore, there has been a lot of money put into the Chinese financial system with the loans to-date up about 25 percent. This money is staying within the system, and we think will provide ample liquidity to fund purchases of property," he said.