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From Sagar Chakraverty, Opalesque Asia:
Target Asset Management, a Singapore-based asset management boutique managing nearly $2bn in AuM, saw its Target Asia Fund return 5.05% (-0.26% YTD) in March, compared to the benchmark index MSCI ACFE Ex-Japan, which rose 6.99%. Target AM is one of the top ten Asian fund managers that are operating from Asia.
The March performance was largely helped by positive sentiment coming back into the Asian markets, bolstered up by possible resolution to Greece's financial problem and the re-assurance of continued easy monetary policy by the major economic powers.
But the picture has not yet become perfect. Fears of over-heating within the Asian economies (primarily China) in the coming month always looms, thereby raising the chances of stronger policy response than the market is prepared for. To make things more difficult, rising inflation and commodity prices could pinch Asia harder than developed markets - although Asian currencies can be revalued to deflate the commodity prices. But a weakening US dollar is something that needs monitoring.
Target said in its latest monthly fund report on 31-March: "In view of the above circumstances, we feel it is time to be a bit more cautious. We will increase investment in more defensive sectors such as agriculture, food, infrastructure and domestic consumption."
Target Asia Fund is a long-only fund investing in Asia ex-Japan equities. The fund manager's uses a bottom-up...................... To view our full article Click here
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