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 were once again the best performers last month, posting an average return of 8.37%. Commodities funds also performed strongly, posting an average return of 7.09%.
Sector-wise, portfolios that invest in banks and financials posted an average return of 10.17%, outperforming the benchmark Financial sector Stock Exchange of Thailand index. Funds that invest in China and Thailand equities were also among the top performers.
All of the 10 highest returning equity funds in October are funds managed by SCB Asset Management Company. The three highest funds were SCB MAI Stock Long Term Equity Fund with a gain of 13.80%, SCB Munkhong Open End Fund with a gain of 13.28%, and SCB Taweesub 3 Open End Fund with a gain of 13.26%.
Suthee Luangaramkul, a Bangkok-based analyst at Lipper, expects stock markets to remain volatile in the short-run due to negative external factors such as the subprime loss write-offs in the US, the weak US dollar, and the higher likelihood of a US economic slowdown.
Average October performance of fund groups registered for sale in Thailand, by asset types:
Mixed Assets +5.69%
Money Market +0.27%
Top 5 fund sectors in terms of performance in October, with their average gain:
Equity Sector Banks and Financials +10.17%
Equity China +9.52%
Equity Thailand +9.21%
Equity Greater China +7.97%
Equity Emerging Markets Global +7.86%
Bottom 5 fund sectors in terms of performance in October, with their average loss/gain:
Equity Global ex-US -1.57%
Equity Japan -1.46%
Equity Sector Pharmaceutical and Health -0.54%
Equity Sector Cyclical Consumer Goods -0.54%
Bond THB +0.19%
Top 5 equity funds in October, with gain:
SCB MAI Stock long-Term Equity +13.8%
SCB Munkhong Open End +13.28%
SCB Taweesub 3 Open End +13.26%
SCB Taweesub 2 Open End +13.20%
SCB Munkhong Open End +13.19%
Bottom equity 5 funds in October, with loss/gain:
Thananchart Value ex-US -1.57%
Asset Plus Nippon Growth -1.46%
Thananchart Premium Brands -0.54%
1 A.M. Smart Long-Term Equity -0.15%
Tisco Global Equity +0.65%
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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