Fund Commentaries
29 April 2022
1Q 2022 Commentary
Summary
- Performance
- Increased exposure to Vietnam, dry bulk and commodities
- Capital flows into Indonesian and Thai equities of USD 6 bn for 1Q2022
Performance
In the first quarter of 2022, the RVC Emerging Asia Fund returned +1.6% versus the MSCI ASEAN which increased +1.8%.
Over the past 12 months the RVC Emerging Asia Fund returned +16.5% versus the MSCI ASEAN which declined -0.5%.
Key Movements & Weightings
Key Movements
The Fund was active in January quickly increasing cash from near 0% intra-month to 10%, as a result of the movements in the market due to Omicron and other factors which resulted in opportunities again being available and thus:
- In the month of January we increased our exposure to ITMG IJ
- Increased weightings in tourism related plays in Thailand, specifically CENTEL TB
- Increased our weightings in Vietnam with the majority in GMD VN which is now 5% of the Fund.
- Increased exposure to dry bulk during Chinese New Year.
- As a result of the Ukraine/Russia war, we took advantage of the spike in oil prices to USD 130/bbl and reduced one of our oil holdings, specifically PTTEP TB from 3% to 1% of the Fund.
Weightings by Category
| % Weight | Key Name(s) | |
|---|---|---|
| Bad debt/Non-bank Financing | 27% | JMART TB, SINGER TB, JMT TB, CHAYO TB |
| Supply Chain Disruption | 18% | ITMG IJ, PSL TB, TTA TB, HIBI MK, III TB |
| Tech & Travel | 17% | CENTEL TB, SHR TB, MAC PM, BE8 TB, YGG TB |
| Vietnam Ascent | 14% | GMD VN, VPB VN, TCB VN, SCS VN, VTP VN |
| Market Share Consol | 10% | RALS IJ, MRSGI PM, SEVN PM, JFC PM |
Capital Flow ASEAN
During the First Quarter of 2022 there has been a shift in international capital flow into ASEAN, specifically to Indonesia and Thailand.
Summary:
- Over the past 12 months, $3.9 bn into Indonesia, $2.7 bn into Thailand
- Year to date, $2.2 bn into Indonesia, $3.4 bn into Thailand.
3 months
12 months
