Axial Asia fund on the rise in April


April’s gains of 4.96% were a continuation of strong performance for the past six months for the Axial Asia Fund, and were likewise derived from gains in Korea and Taiwan, explains portfolio manager Eugene Chung. Technology-related holdings in both markets outperformed, and the Pan-Asia fund’s strong April showing was also a reflection of the general outperformance of cyclicals, Chung says.

China’s ability to curb inflation will have a big impact on outlook, Chung says. If food and fuel price inflation continues it will trickle down into services and wage inflation, which will in turn impact margins.