Despite the return of market volatility, a Vietnam equity fund managed by JP Morgan Asset Management has soared to the top as best performer, according to data from FE Analytics.
Global equity markets have been volatile this year, led by a market correction in February and prompting analysts to herald “the return of volatility” after years of calm, incremental upside. The S&P 500 plunged 6% to 2,648.94 after the first five days in February, according to Bloomberg data, but the first quarter as a whole has been jumpy.
Yet Vietnam investments may provide some insulation. JP Morgan Asset Management’s Vietnam Opportunities Fund was the best performing equity fund, returning 107.41% on a three-year period ending 31 March, among the universe of SFC-authorised funds with AUM of at least $100m, data from FE Analytics shows.
But investment opportunities in Vietnam are difficult to find, said the fund’s manager, Isaac Thong, in a previous interview.
“There is a lack of high-quality, well-rounded companies [in Vietnam], and because of that, fund managers have to search through many companies to find some gems,” he said.
The fund, which received a Gold award in Fund Selector Asia’s Fund Awards in Hong Kong this year, has been consistently in the top quartile, with a cumulative five-year return of 129% ending June 2017 versus 15.7% for the sector.
A number of industry players have warned about a more volatile market environment this year, such as Bank of Singapore, Pictet Asset Management and Eastspring Investments.
Could Vietnam be a safehaven? In the first quarter of 2018, the MSCI Vietnam Index returned 17.59% and the S&P 500 returned -0.76%, according to FE data.
The next four best performing funds are two China-focused funds, which are both managed by UBS Asset Management, and two technology funds, one managed again by UBS AM and the other by Blackrock.
The top five performers in Q1 2018
Source: FE. Universe is SFC-registered products with at least $100m in AUM.
All fund NAVs converted to US dollars for comparative purposes.