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Over 90% of stock mutual funds profitable this year

Over 90% of stock mutual funds profitable this year

Taipei, Dec. 29 (CNA) Despite the weakness of the global economy, more than 90 percent of about 1,100 mutual funds either targeting the local bourse or its overseas counterparts have been profitable so far this year, JP Morgan Asset Management said Saturday. The statistics released by the fund management firm showed the average return of the stock mutual funds hit 11.05 percent, while the return of the 10 most profitable funds among the 1,100 funds even topped 37 percent. The 10 top earners have largely invested in the fast growing Association of Southeast Asian Nations (ASEAN) and real estate in the Asian markets, JP Morgan Asset Management said. Pauline Ng, a fund manager with the JF ASEAN Fund, said although a sluggish global economy has hurt exports in the world, bilateral trade growth among the 10 ASEAN member countries remained solid and investments in the region still grew. As a result, Ng said, stock markets in the ASEAN region have been defensive during the global economic downturn and served as a safe haven for investors. The stock markets in the region have posted gains for four years in a row, she said. According to Ng, so far this year, the bourses in the Philippines and Thailand, two of the 10 ASEAN members, have risen about 30 percent, while net foreign institutional buying in the two markets have hit a new high since 2008. Furthermore, Ng said, the MSCI Southeast Asia Index has added more than 20 percent so far this year. Ng said investments in the ASEAN region has begun to pick up since 2010 with investors eyeing property and industrial sectors. Ng added that fixed private investments have accounted for more than 20 percent of the region's gross domestic product (GDP). She said the 10 member countries in the bloc have made intensive efforts to knock down most of trade barriers to facilitate export growth in the region, adding that in 2011, bilateral trade made up 25 percent of the region's GDP. With China, Japan, South Korea, India, Australia and New Zealand to join the ASEAN Free Trade Area, the bloc's GDP is expected account for almost one-third of the world's, Ng said. Jeffery Roskell, a fund manger with the JF Asia Pacific Income Fund, said as the U.S. property market has showed signs of a recovery amid rising liquidity, many real estate investment trust funds have recorded solid gains so far this year. Roskell said since major central banks in the world, including the U.S. Federal Reserve, have kept injecting funds into the market, Asia Pacific has benefited from a spill-over effect with massive funds having entered the region. The fund manager said ample liquidity has prompted many investors to park their money in real estate located in the area. (By Maranda Hsu and Frances Huang)


Updated : 2021-04-15 08:14 GMT+08:00