On my recent trip to Switzerland, I sat down with SooHai Lim, Director of Asian Equities and Portfolio Manager for the Baring ASEAN Frontiers Fund.
I began by asking SooHai what was unique about the Baring ASEAN Frontiers Fund amongst the growing number of ASEAN investment funds.
SHL - Well, one interesting difference is that we not only cover the countries of the ASEAN-bloc but also included in our portfolio are the regional 'frontier' markets of Sri Lanka and Bangladesh. We can also allocate to markets such as China and India, if necessary, to buy companys who have specific ASEAN/Frontier exposure.
AVC - What is the methodology of the Fund, for example, what do you look for in a stock?
SHL - We can bullet point our approach when we are searching for good stock stories. We look, of course, for unrecognised GROWTH potential, however this must be allied to some degree of LIQUIDITY. We are very sensitive to CURRENCY exposure so we need to make sure we have a balance with a position perhaps in currencies we feel to be undervalued. Finally we look both for credible MANAGEMENT who have a proven track record and tick the boxes regarding corporate governance and a clear strategy, whilst the company should have a reasonable VALUATION reflecting an attractive risk/reward ratio.
AVC - Where do you see opportunities going forward?
SHL - Almost half (45%) of our Fund is in two markets: Indonesia and Thailand. Indonesia has been the "poster-child" for ASEAN over the last 10 years in the deleveraging of its economy from the excesses which caused the Asian crisis of 1997. Current public debt levels have come down to 25% of GDP from a peak of almost 90% in 2000, whilst credit penetration is the lowest in the region - this bodes well for future growth as the economy is built on pretty strong fundamentals.
AVC - We are seeing highly volatile markets at present amid global uncertainty, particularly in the US and Europe, do you see this as a huge threat to the Fund?
SHL - Of course, in todays interconnected world its impossible to be entirely immune from global events but what is interesting for us is that 70% of our investors come from the Asian region - particularly through Hong Kong and Singapore, so as long as those markets remain robust, we should do just fine.
*This fund is also soon available through AVC Advisorys' recommended fund platforms, more information on which can be found here:
I began by asking SooHai what was unique about the Baring ASEAN Frontiers Fund amongst the growing number of ASEAN investment funds.
SHL - Well, one interesting difference is that we not only cover the countries of the ASEAN-bloc but also included in our portfolio are the regional 'frontier' markets of Sri Lanka and Bangladesh. We can also allocate to markets such as China and India, if necessary, to buy companys who have specific ASEAN/Frontier exposure.
AVC - What is the methodology of the Fund, for example, what do you look for in a stock?
SHL - We can bullet point our approach when we are searching for good stock stories. We look, of course, for unrecognised GROWTH potential, however this must be allied to some degree of LIQUIDITY. We are very sensitive to CURRENCY exposure so we need to make sure we have a balance with a position perhaps in currencies we feel to be undervalued. Finally we look both for credible MANAGEMENT who have a proven track record and tick the boxes regarding corporate governance and a clear strategy, whilst the company should have a reasonable VALUATION reflecting an attractive risk/reward ratio.
AVC - Where do you see opportunities going forward?
SHL - Almost half (45%) of our Fund is in two markets: Indonesia and Thailand. Indonesia has been the "poster-child" for ASEAN over the last 10 years in the deleveraging of its economy from the excesses which caused the Asian crisis of 1997. Current public debt levels have come down to 25% of GDP from a peak of almost 90% in 2000, whilst credit penetration is the lowest in the region - this bodes well for future growth as the economy is built on pretty strong fundamentals.
AVC - We are seeing highly volatile markets at present amid global uncertainty, particularly in the US and Europe, do you see this as a huge threat to the Fund?
SHL - Of course, in todays interconnected world its impossible to be entirely immune from global events but what is interesting for us is that 70% of our investors come from the Asian region - particularly through Hong Kong and Singapore, so as long as those markets remain robust, we should do just fine.
*This fund is also soon available through AVC Advisorys' recommended fund platforms, more information on which can be found here:
0 коммент. :
Отправить комментарий