Fund Objective

The F&C South-East Asian Equity Fund aims to achieve long-term growth.

View on Past Performance

The fund encountered a tough environment during Q3, with our commodity and energy positions in particular suffering as global and Asian growth forecasts were cut significantly in the light of the credit crunch in the global financial system. Rio Tinto, Queensland Gas, and Golden Agri-Resources, were notable laggardsOut-performers tended to be found either in companies with very strong balance sheets such as QBE Insurance, or in less economically sensitive stocks such as supermarket Woolworths in Australia, or gas pipeline operators PGas in Indonesia.

Future Expectations

The global economic environment has clearly deteriorated significantly during recent months, with a recession now looking likely. However with Asia's markets significantly lower than a year ago, and trading near to the valuations levels that have marked the bottom of serious bear markets during the last 30 years, significant earnings downgrades appear to be in the price.We would hope that a combination of a relaxation in global macroeconomic policy in coming months, as well as a restoration of trust and stability between global financial institutions, would provide room for a focus on the attractive valuations now on offer across Asia.

Fund Details