1Q 2022 Commentary
- Increased exposure to Vietnam, dry bulk and commodities
- Capital flows into Indonesian and Thai equities of USD 6 bn for 1Q2022
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
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.
- 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.