Shares of Akzo Nobel (AKZOY) have been flat this year due to slower sales in China. Dale Winner, portfolio manager for the Wells Fargo Advantage International Equity Fund (WFENX), said the Dutch coatings manufacturer will paint a prettier profit picture in coming months. ‘The majority of its sales are domestic in Europe so it is benefitting from the beginning of a recovery economically and that’s more than offsetting any slowness which is temporary in China,’ said Winner, adding that lower titanium dioxide costs will also help Akzo Nobel’s profit margins going forward. The Wells Fargo Advantage International Equity Fund is up 4.7% so far this year, according to fund-tracker Morningstar. The $405 million fund sports a trailing 12 month yield of 4.8%. Winner sees China Everbright as a big winner in the stock market even though China’s overall economy is slowing. He said the company is benefitting from the opening of the Chinese financial markets. ‘The bigger drivers of that stock price are the continued structural reforms, the continued deregulation of the financial markets rather than the temporary slowdown on the manufacturing side of the Chinese economy,’ said Winner.
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