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Global equity markets fared well last month, and that helped boost the returns of equity funds in Thailand and other markets in Asia. Equity funds outperformed other asset classes with a 2.95% average gain.
Mixed-asset funds gained an average of 1.65%. Low-risk-exposure funds such as protected funds, bond funds, and money market funds gained 0.11%, 0.10%, and 0.16%, respectively.
Commodity funds, the highest performing funds in the first quarter, continued to post a more modest return of 0.42%. Soaring commodity prices drove the performance of commodity funds up 21.31% for the January to April period and up 49.82% for the one-year period.
The strong performance of international stock markets led to a good month for funds that invest overseas. Emerging markets Far East, Greater China, and emerging markets global gained an average of 14.12%, 9.58%, and 9.11%, respectively. Domestic equity funds experienced relatively less-impressive returns following a weaker Thai market. Equity Thailand funds posted an average gain of 2.21%, lower than their 3.02% rise in the benchmark Stock Exchange of Thailand index.
The best performing equity funds in April were TISCO China India Dividend and ING Thai BRIC 40, with returns of 14.30% and 11.34%, respectively. The weakest performance came from TMB Gold, with a loss of 3.56%.
The recovery of investment confidence in April improved risk appetite, and safer investment vehicles such as sovereign and quasi-government securities were sold off. Thai bond funds ended the month with a nearly flat performance, gaining a mere 0.01%.
Average performance of fund groups registered for sale in Thailand in April:
Mixed Assets +1.65%
Money Market +0.16%
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