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.
“Growth and Reflation are supportive environments for active stock picking and positive fund alpha generation”Market Review and Outlook ASEAN markets were more volatile in February as central banks may need to hike rates more quickly in response to rising inflation. However, market declines were mostly recouped as economies and earnings continue to grow robustly. Cyclicals outperformed defensives despite heightened risk aversion: Energy and Financials over Consumer Staples and Telecom. Market expectations have shifted from the Goldilocks economy of above-trend growth, below-tend inflation to a Reflationary scenario of both above-trend growth and above-trend inflation. Higher market volatility notwithstanding, asset reflation is equity-positive as long as central bank rate hikes are gradual and growth expectations are realized. The market return target of 20% for 2018 would be enhanced by accumulating periodic market corrections over the course of the calendar year.Portfolio Strategy Fund outperformance was achieved through active selection of GARP stocks: faster earnings growth and positive earnings revisions at reasonable valuations. These stocks are mostly in cyclical sectors where earnings are enhanced by economic growth and asset reflation: Financials benefiting from rising interest rates and asset reflation, Commodities supported by global demand growth and supply discipline, Technology beneficiaries of global outsourcing and Consumer Discretionary gaining from stronger domestic demand. Utilities, Telecom, Consumer Staples and REITs were funding sources since the impending bond bear market disadvantages bond proxies with long-duration, low-growth cash flow streams.
Share class (K-CHF)
(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.