The Sub-Fund's investment objective, over a recommended investment period of more than 5 years, is to grow net asset value by investing in companies registered predominantly in Asean Countries.
“Favourable environment for active stock picking and alpha generation not seen since 2012”Market Review and Outlook ASEAN equity advanced to pre-QE tapering highs of mid-2013. Market re-rating from stabilizing capital and commodities markets in 2017 followed-through to re-rating on faster growth prospects in 2018. Market breadth accompanied market gains as most countries and sectors advanced. Oil and coal stocks performed the strongest from earnings upgrades on higher oil and coal price forecasts. Improving global macro provides a favourable environment for active stock picking and alpha generation not seen since 2012. ASEAN markets are targeted to return 20% in 2018 with periodic corrections of less than 10% expected provided positive fundamentals sustain: Goldilocks economy of growth and stable inflation and positive earnings revisions.Portfolio Strategy Fund outperformance was achieved by overweighting coal stocks and underweighting telecom stocks. Coal stocks were increased to become the fund's largest overweight. Producer profit forecasts have yet to fully incorporate higher coal prices supported by China supply-side reform and production discipline. Malaysian stocks were increased in anticipation of an early election in 1H18. Government-linked stocks historically rise in the run-up to elections. REIT stocks were sold as bond yields are likely to rise on stronger economic growth. Philippine banks were sold because new equity issues are expected to cap price performance in 1H18.
Share class (A-USD)
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.