Schroder AsiaPacific beats benchmark over first half – During the six-month period ended 31 March 2019, Schroder AsiaPacific (SDP) delivered a NAV total return of 2.2% compared to a total return of 1.9% for the benchmark; stock selection drove relative outperformance.
Indonesia, the Philippines and Hong Kong Outperform
Indonesia, the Philippines and Hong Kong were the strongest performers over the half-yearly period. In Indonesia, growing confidence over the presidential election (which the more market friendly Jokowi indeed won) and stability in the currency supported returns.
The Philippines has proved a ‘safe haven’ amid global economic uncertainty, while a more dovish outlook for interest rates and liquidity supported Hong Kong returns.
On the trade front, weak performances in Korea and Taiwan reflected their trade sensitivity and, more specifically, the downturn in the semiconductor cycle. Discussing the trade tensions between the US and China, SDP’s chairman, Nicholas Smith, said: “There is a sense that the trade frictions between China and the US are approaching a pivotal moment. While the outcome is hard to anticipate, and will remain a major influence on short-term market movements, we want the portfolio to stay true to what created its historic success: finding Asia’s winners.”
SDP: Schroder AsiaPacific beats benchmark over first half