Later cycle movers, including undervalued Indonesian property stocks, started to make progress in April on the back of a lower interest rate environment and positive foreign ownership rule changes. The Asean Small Cap Fund capitalised on this to gain 5.63% in the month. Year to date the fund is up 10.23%, making it one of the top performers in the Asia ex-Japan universe.
There is a high probability of negative returns due to Eurozone issues in the coming months, says Asean Investment Advisors’ Davies Roes. Beta positions will be hit as a result of global risk concerns and alpha-focused