BT Fund Managers, the Asian division of Bankers Trust, is rebuilding the Asian equity exposure of its regional and global managed funds, director Paul O'Donnell says. Regional funds were typically reducing their cash holdings to 5 per cent from about 18 per cent, with global balanced funds raising their stakes to 7 per cent from about 4 per cent, he said yesterday. Hong Kong stocks, which had the heaviest weighting, were being used as China plays. Bankers Trust manages about US$200 billion for individuals, companies, pension schemes and governments. 'While there has been overheating in some economies, particularly Malaysia, Thailand, Indonesia and the Philippines, where strong consumption and investment is causing current account deficits to blow out, the respective governments have taken measures to address these concerns,' Mr O'Donnell said. 'They have tightened monetary policy and implemented specific measures, such as those in Malaysia, to reduce over-investment in the property sector. Now is not the time to be cutting exposure to the region significantly. Rather, there is an opportunity to pick up bargains. We will see regional and international funds re-focus on Asia as valuations remain very compelling.