PH 2nd 'most loved' equity fund in Asia

Posted at 03/27/14 7:52 AM

MANILA - The Philippines is the second ''most loved'' equity fund market in Asia next only to India, according to the latest study of HSBC Global Research.

''India remains the most loved market in the region, followed by the Philippines and Thailand,'' the British bank said.

HSBC said the Philippine equities market is also in its favored list.

''In terms of our current views on Asian equities, we overweight the Philippines, Taiwan, Malaysia and Indonesia, and underweight Thailand, China and India,'' it said.

By industry type, HSBC said investors preferred utilities, healthcare and energy.

''They also remain overweight on cyclicals like materials and industrials, but they reduced exposure to both. Funds are underweight on telecoms, and financial, though they increased exposure to the latter. IT remains the least owned sector in the region,'' it said.

''Investors raised their exposure to Chinese equities to near five-year high levels. Interestingly, China funds suffered record weekly redemptions in mid-March. Still, China is overweight as the market fell faster than foreigners could sell. By sector, investors increased their exposure to utilities and energy, while they decreased their exposure to telecoms and IT,'' it added.

HSBC noted that in March, Asian emerging markets received positive foreign investment inflow, as investors favored selective markets.

''Funds that left Indonesia last year have now all returned; in China, despite record-high redemptions, funds have remained overweight,'' it said.

Among developed markets, investors maintained a positive stance on Singapore compared to Hong Kong, but reduced their exposure to both. Investors increased their exposure to Indonesia, but cut down on Korea and Taiwan’s equity fund markets.