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.