Mutual funds registered for sale in Thailand posted an average return of 2.2% in September, a turnaround from an average loss of 1.36% in August, according to data from Lipper.

Reversing sharp losses in August, equity funds were among the best performers in September, posting an average return of 5.64%. The September data reflects the strong gains in stock markets worldwide, following the 50-basis-point cut in the US Federal ReservesÆ federal funds target rate. In contrast, equity funds in Thailand posted an average loss of 3.88% in August and only five portfolios posted gains that month.

Despite the gains in stock markets worldwide last month, Suthee Luangaramkul, a Bangkok-based analyst at Lipper, says the Thai stock market has yet to fully recover from the fallout of the US subprime mortgage crisis in July and August.

ôThe Thai market, one of the few underperforming markets in the region, did not yet go back to the level before the turbulence in August,ö he says.

The Stock Exchange of Thailand composite index was up around 24% in the first nine months of this year, an impressive double-digit gain but one that still trails behind markets such as China, Hong Kong, South Korea and India.

Average September performance of fund groups registered for sale in Thailand, by asset types:

Commodities +11.10% *
Equities -5.64%
Mixed Assets +3.74%
Protected +0.49%
Money Market +0.22%
Bonds +0.02%

*Lipper tracked only one commodity fund in Singapore in September, the Finansa Global Commodities Fund.

Top 5 fund sectors in terms of performance in September, with their average gain:

Equity Asia-Pacific Ex-Japan +12.79%
Equity Emerging Markets Global +11.40%
Commodities +11.10%
Equity Asia-Pacific 11.01%
Equity Sector Gold and Precious Metals +10.29%

Bottom 5 fund sectors in terms of performance in September, with their average loss/gain:

Equity Japan -1.26%
Bond Thai Baht -0.04%
Bond Global +0.02%
Money Market Thai Baht +0.21%
Money Market Global +0.29%

Top 5 equity funds in September, with gain:

UOB Smart Asia +14.48%
1 AM Global Emerging Market Equity +11.51%
TMB Emerging Markets Equity Index +11.28%
Aberdeen Asia Pacific Equity +11.10%
ING Thai All Asia Equity +11.01%

Bottom equity 5 funds in September, with loss/gain:

Asset Plus Nippon Growth -1.26%
1 AM Smart Long Term Equity +0.07%
Bualuang Thanakom Open-End +0.19%
Thanachart Premium Brands +0.88%
BT Life 70 Long Term Equity Dividend +1.39%