Asean funds lifted by returns from banking, consumer, infrastructure

(Nov 20): Asean equity markets are up 20% year-to-date, in US dollar terms, according to a Nov 13 report by Morgan Stanley Research equity strategists Sean Gardiner and Aarti Shah. That is not a bad show, but it masks differences among the various countries. Singapore has rebounded from a weak 2016, while expectations of reform have prevailed in the Philippines. However, markets such as Indonesia, Thailand and Malaysia have faced “disconnects between improving macro climates and stagnating to deteriorating micro factors”, the report says.

This fragmented landscape presents a unique set of challenges to Asean equity fund managers. The performances of the various Asean equity funds available to retail investors here vary widely too. On a year-to-date basis, the best performer this year is the Templeton Asean Fund A (acc) USD, up 25.3%. The worst performer is the Legg Mason Martin Currie Southeast Asia Trust Class A (SGD) Acc, up 4.9%. Even over longer periods of three and five years, the differences in performance are quite significant. However, when considered over a longer time frame, the betterperforming funds do stand out.

The best performer, in terms of annualised five-year returns, is the JPMorgan Asean Equity Fund. Launched in 2009, the A (acc) USD share class of the fund has generated 4.8% in five-year annualised returns as at Nov 14. It is also the best performer on a three-year basis, with an annualised return of 4.2% over that period.

---

Related Stories

• Foreign investment the key to Southeast Asia’s energy transition
• Investors book a passage to India in election year
• Next stop on the Asean Express: Indonesia

---