The FTSE World Pacific (ex Japan) Index posted a total return of +12.8% in sterling terms during the period. The Fund made a modest switch from Hong Kong to Singapore, as the latter offers cheap valuations and the Government has more policy flexibility to boost the domestic economy.
The global and regional economic and earnings outlook is likely to show a positive turn-around in the coming 12 months, albeit of moderate proportions. Asia Pacific equity markets should, after a period of consolidation in the short-term, continue to advance, based on favourable growth, valuation, liquidity and management trends.