The Dutch pension asset manager's Asia Pacific head of real estate says his team has just had one of its busiest years ever and that 2021 is looking similarly promising.
Equity funds posted a 1.18% average return while mixed-asset funds gained 0.78% on average. The low-risk-profile portfolios such as protected funds, bond funds, and money market funds notched up 0.02%, 0.20%, and 0.18%, respectively. Commodity funds still outperformed and beat soaring inflation, posting an average return of 1.19% in May, 25.72% for the first five months of 2008 and 57% for the past 12 months.
Equity Thailand funds posted an average return of 0.84%, still better than the benchmark Stock Exchange IndexÆs 0.35% gain. Equity funds that invest oversees sharply outperformed, especially those that invest in emerging markets Europe (+11.22%), Japan (+8.09%), and global emerging markets (+5.29%). Equity funds that invest in China and Far East emerging markets were laggards, posting average losses of 7.90% and 6.38%, respectively.
The best performing equity funds last month were the Manulife Strength-Emerging Eastern Europe FIF and Asset Plus Nippon Growth portfolios, which posted gains of 11.22% and 8.09%, respectively. At the bottom of LipperÆs performance chart is TMB China Equity Index, which posted a loss of 7.90%.
In ThailandÆs bond market, Thanachart Fixed Income FIF 2 and Tisco Australia Bond were the outperformers, with returns of 6.13% and 4.68%, respectively, following an unexpected gain from baht depreciation. The worst performing bond fund was Bualuang Thanasarn Plus 19/08, with a loss of 1.74%.
ôThe investment outlook remains bumpy from the inflationary threat, which has been apparent for a number of months and which could worsen unless world crude oil prices stop rising,ö says Suthee Luangaramkul, a Bangkok-based research analyst at Lipper.
Average performance of fund groups registered for sale in Thailand in May:
Mixed Assets +0.78%
Money Market +0.18%
Mega players Nippon Life and Dai-ichi Life are looking for opportunities in higher-yield single-A US corporate bonds, which offer more appealing yields than stagnant domestic offerings.
The “lower for longer” monetary policy and stimulus packages, coupled with the rolling out of vaccine programmes favorably support real estate investing in the region, with offices and data centres presenting forward-looking opportunities.
As US fixed income default rates rose and yields fell during the pandemic, are Asian bonds, which have had more stable yields through 2020, looking more attractive?
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