“The weighting of Chinese and Indian stocks in the fund reflects the benefits of the reform programs being implemented in those markets,” Nikko AM head of Asian equities and New Asia Fund portfolio manager Peter Sartori said.
“While the relative stability of the Philippines, Indonesia and Singapore has contributed to a promising period of economic development … the big difference for Asia in 2014 is the two big emerging markets – China and India – have been performing much better,” Mr Satori said.
Mr Sartori also pointed out the strong performance in India is being driven by the “game-changing” election result in May 2014.
“[The] election result in May, [is] lifting the entire country, allowing it to begin to realise its undoubted potential and break away from the now maligned BRIC moniker,” Mr Sartori said.
Mr Sartori added that the New Asia Fund has also performed well “in regard to stock selection” over the last three years.
The [Chinese] government is now beginning to implement much-needed reforms,” Mr Sartori said. “China is the cheapest market in the region and with the ongoing implementation of reforms, we expect the overall market to continue to push higher.”
