Tài liệu Investment Views Asia 1st quarter 2013 pptx

Investment Views Asia
1
st
quarter 2013
Foreword 3
Current market assessment 4
1. Focus
Asian outlook 6
Asian selection 8
2. Countries
China / Hong Kong 10
Singapore 12
Malaysia 14
Indonesia 16
South Korea 18
Thailand 20
Australia 22
Investment management mandates 24
Contacts 25
3. Notes
Methodology 28
Glossary 28
Disclaimer 30
Contents
Foreword
Asia – the bright spot
Dear Reader
The start of a new year is traditionally a time for crystal ball gazing. We peer into the future with
a mixture of hope, anxiety and foreboding. Will we stay healthy? What challenges will face us
at work? Will the world stay safe for our loved ones? We simply don’t know, of course. But we
are not powerless. By taking sensible precautions we can make it more likely that things will turn

out the way we want. This also applies to VP Bank’s investment strategy. We cannot change
the economic realities, but we can still make sensible and rewarding investment decisions based
on a careful assessment of risks and opportunities.
Economic reality in 2013 will again be rather sombre in many parts of the world. Progress has
been made in tackling the eurozone debt crisis, but the economic consequences of this financial
debacle have left deep wounds in the affected countries and are seriously undermining the
performance of the global economy. World trade is stagnating, and investment growth is being
stifled by uncertainty. The eurozone will register zero growth in 2013, while America will feel
the impact of the compromise agreement on circumnavigating the “fiscal cliff”. We expect US
growth in 2013 to lag behind the consensus forecast. It is now clear that the industrialised world
is facing a succession of lean years. The 2009 crisis and its economic repercussions were under-
estimated. The clean-up of public finances and the restructuring of economic models will take
longer than even the pessimists expected.
The bright spot is Asia. Here too, economic momentum is less vigorous than in the past, but the
Asia-Pacific region is buoyant compared with the rest of the world. Indeed, these economies are
now the driving force behind global growth.
This second issue of Investment Views Asia will, we hope, provide you with useful guidance
when
making investment decisions in Asian markets. Our analysts paint a mixed picture. While China
is getting into its stride again thanks to massive infrastructure spending, other countries (notably
Thailand) will face slower growth this year. Equity market prospects vary greatly from country
to country. This makes it all the more important to carry out a detailed assessment that takes due
account of economic fundamentals, corporate positioning and market valuation. Asia cannot be
treated as a homogeneous whole. Our analysis focuses on the specifics of each country and market.
A new feature of this issue is the article on Australia. This country deserves special attention
as
an important investment destination in the Asia-Pacific region.
We wish you an enjoyable read and a successful 2013.
Reto Isenring
Managing Director

VP Bank (Singapore) Ltd.
4| 1
st
quarter 2013 | Current market assessment
The tables below summarise VP Bank's trend assessments for all asset classes in our investment universe. The arrows reflect
the forecasts of our investment strategists for the coming three to six months. The trends for currencies and equities
indicate
expected percentage changes in value. The bond assessments indicate expected changes in yields, expressed
in basis points.
The symbols are explained in the key at the bottom of the page.
Current market assessment
Key interest rates
Japan
China
Hong Kong
South Korea
Malaysia
Indonesia New
Thailand
Equities
Europe
North America
Pacific
• Japan New
• Australia New
• Singapore
Emerging markets New
• China
• Indonesia
• Thailand New

• South Korea New
• Malaysia
Currencies – Expected appreciation/depreciation:
> +5% +2% to +5% –2% to +2% –5% to –2% < –5%
Bond yields, key interest rates – Upside/downside ranges indicated by our 3–6 month absolute performance assessments:
> +50 basis points +25 basis points No change –25 basis points < –50 basis points
Equities – Upside/downside ranges indicated by our 3–6 month absolute performance assessments:
> +5% +2% to +5% –2% to +2% –5% to –2% < –5%
Currencies
EUR vs. USD
JPY vs. USD
AUD vs. USD
CNY vs. USD New
HKD vs.USD
SGD vs. USD
KRW vs. USD
MYR vs.USD New
IDR vs.USD
THB vs.USD New
Bond yields
Japan
China New
Hong Kong
Singapore
South Korea New
Malaysia
Indonesia
Thailand New
Emerging market bonds, general
Hard currency EMA

Local currency EMA
January 2013
October 2012 January 2013October 2012
n.a.
n.a.
1. Focus
Asian outlook | Dr Thomas Gitzel
Asia powering global growth
6| 1
st
quarter 2013 | Focus | Asian outlook
According to the Mayan calendar the world should have
ended on 21 December 2012. It didn’t, and it won’t end
in 2013 either. Nor will the global economy, despite the
apocalyptic chanting of the gloom-mongers. World eco-
nomic growth will be slow compared with the past, but we
are not
facing meltdown. While the industrialised nations are
unlikely
to provide much stimulus in 2013, the Asian region
is becoming the central pillar of global economic growth.
Industrialised economies tread water
We see no evidence of an accelerating global economy in
2013. Growth will be at about the same level as last year.
Uncertainty about the eurozone debt crisis and fears of a
protracted period of macroeconomic doldrums are discour-
aging business investment. At the same time most industri-
alised countries are being forced to tighten their belts. This
does not apply only to the eurozone. We expect the US
economy to grow by only 1–1.5% in the coming year. Even

the flamboyantly successful Australian economy is facing
leaner times. Confronted with a relatively high budget deficit
of 3.7% of GDP, the Australian government now intends to
put a brake on public expenditure.
These negative factors are stifling world trade. International
flows of goods are stagnating. This is putting a serious
damper on export-driven growth in the emerging markets.
Flagging exports result in weaker investment growth. On
balance, the emerging markets will therefore also be feeling
the pinch. Structural problems in the BRIC economies are
adding to the difficulties. Russia and Brazil have relied too
heavily on the commodities boom and failed to make neces-
sary investments outside the resources sector. Brazil’s
problems have been exacerbated by a massive currency
appreciation, which has seriously dented the country’s
competitiveness. India, meanwhile, has sealed itself off from
inflows of international capital and now seems to be paying
the price in the form of a structural slowdown of growth.
World trade
Asia still the powerhouse
Thus the Asian region is yet again functioning as the power-
house of the global economy. Healthy public finances enable
governments in these countries to combat decelerating
growth by mounting large-scale public infrastructure projects.
The best example is China. Hard macro data in China have
shown a positive trend in recent months, with industrial out-
put, investment growth and retail sales all picking up again.
We expect this improvement to continue in the coming
quarters. We regard Chinese GDP growth of 8.5% for 2013
as realistic.

The ASEAN 5 countries (Malaysia, Indonesia, Philippines,
Singapore and Thailand) will also be able to accelerate,
though growth rates here will remain relatively low. GDP
growth of 5.8% in 2013 looks feasible, following an estimated
5.4% in 2012.
World trade volume (% yoy)
-20
-15
-10
-5
0
5
10
15
20
25
2000 2010200820062002 2004 2012
7| 1
st
quarter 2013 | Focus | Asian outlook
Equity market overview
Conclusion
The world economy is likely to post lower growth rates for
the foreseeable future. The industrialised nations, in parti-
cular, will be feeling the pinch. This makes Asia’s role in the
global economy all the more important. The up-and-coming
countries in this region offer interesting opportunities for
investors, especially at current attractive valuation levels.
Asian currencies: where now for the renminbi?
Our baseline scenario for 2013 includes a further moderate

appreciation of the Chinese renminbi. Further liberalisation
measures should encourage continuing high inflows of capital
and push the renminbi higher against the US dollar. But this
is not a foregone conclusion. The Chinese government has
often sprung surprises in the past. If the economy expands
less vigorously than expected in the weeks ahead, Beijing
might decide to push down the exchange rate. As the renminbi
now functions as the anchor currency of the Asian region,
a depreciation against the US dollar would pull down other
Asian currencies in its wake. Monetary authorities in the
rest of Asia would hardly be inclined to accept a loss of com-
petitiveness against China.
Attractive equity market valuations
Equity markets in many Asian emerging countries have
presented a much stronger picture since September. Their
relative performance compared with the industrialised
countries, South America and Eastern Europe has now taken
a positive turn, and this trend looks set to continue.
Above-average profit growth should ensure relative upward
momentum in these markets, while the downside is limited
due to attractive valuation ratios. But Asian markets should
not be lumped together indiscriminately. Investors are
advised to adopt a differentiated approach. We still see the
biggest upside potential in China, where we continue to
recommend the classic H shares market even after its recent
outperformance of A shares. We are also confident about the
outlook for the South Korean market, which stands to benefit
from Korea’s easing of monetary policy and the attractive
profit growth of various Kospi heavyweights. We remain
cautious towards Malaysia and Indonesia. We also see risks

in Australia, which we cover for the first time in this issue.
Here we have a clear preference for mining over banks.
Australia
Indonesia
South Korea
Malaysia
Hang Seng China Enterprises
80
85
90
95
100
105
110
115
120
125
Dec 11 Oct 12Aug 12Jun 12Feb 12 Apr 12 Dec 12
Asian selection
8| 1
st
quarter 2013 | Focus | Asian selection
Selected products Asia
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
Emerging markets – equities
VP Bank Fund Selection Emerging Markets MSCI Emerging Markets Index LI0020062001 USD 1,866.29 no 1.62 1.87

Aberdeen Global Emerging Markets MSCI Emerging Markets Index LU0132412106 USD 70.49 no 1.98 2.05
Thames River Global Emerging Markets MSCI Emerging Markets Index IE00B1FGDG68 USD 15.16 no 2.08 2.57
Emerging markets – fixed income
HSBC EMMA Debt Hard Curency JPM EMBI Diversified Index LU0164943648 USD 34.78 no 1.36 0.54
Pictet EMMA Debt Hard Currency JPM EMBI Diversified Index LU0128467544 USD 331.37 no 1.45 1.02
Julius Bär EMMA Debt Local Currency JPM ELMI+ Index LU0107852195 USD 332.60 no 1.96 0.37
ING EMMA Debt Local Currency short term JPM ELMI+ Index LU0546916379 USD 61.91 no 1.35 0.54
Pictet Emerging Currency short term JPM ELMI+ Index LU0366532561 USD 107.97 no 1.20 0.26
Pimco EMMA Debt Local Currency short term JPM ELMI+ Index IE00B1FHFN09 USD 13.93 no 0.85 0.51
Asia – equities
VP Bank Fund Selection Emerging Asia MSCI Emerging Asia Index LI0014803600 USD 2,498.07 no 1.91 2.00
Schroder Emerging Asia MSCI Emerging Asia Index LU0181495838 USD 25.64 no 1.99 2.56
Franklin Templeton Asian Growth MSCI Asia ex Japan Index LU0128522157 USD 36.45 no 2.20 3.29
Aberdeen Global Asia Pacific MSCI Asia Pacific ex Japan Index LU0011963245 USD 73.70 no 1.96 1.97
Fidelity South East Asia MSCI Far East ex Japan Index LU0048597586 USD 7.01 yes 1.95 2.13
Henderson Asian Property FTSE EPRA Asia Index LU0229494975 USD 15.74 no 2.02 0.96
Asia – fixed income
Pictet Asian Debt Local Currency HSBC Asian Local Bond Index LU0255797556 USD 155.76 no 1.60 0.45
Franklin Templeton Asian Bond HSBC Asian Local Bond Index LU0229949994 USD 18.57 no 1.38 0.54
Aberdeen Asian Debt Local Currency short term iBoxx Asia ex Japan Sovereign Index LU0094548533 USD 7.01 no 1.29 0.46
Man Convertibles Far East ML Convertible Asia Pacific Index LU0061927850 EUR 1,621.55 no 1.81 1.32
Fidelity Asian High Yield FF Asian High Yield Index LU0286668453 USD 13.45 no 1.41 0.37
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
Emerging markets – equities
db x-trackers - MSCI Emerging Markets MSCI Emerging Markets LU0455009778 USD 4.20 Derivative 0.65 2.94
Asia – equities

db x-trackers - MSCI EMMA Asia MSCI Emerging Markets Asia LU0455009000 USD 4.01 Derivative 0.65 –
Asia – fixed income
ABF Pan Asia Bond Index Fund iBoxx ABF Pan-Asia SG9999002026 USD 131.30 Unknown 0.19 –
iShares J.P. Morgan Asia Credit J.P. Morgan Asia Credit (USD) SG2D32970329 USD 10.78 Optimised 0.3 0.75
iShares Barclays Capital Asia High Yield Barclays Asia High Yield (USD) SG2D83975482 USD 11.21 Optimised 0.5 0.63
1
as of 03/01/2013
2. Countries
Turnaround accomplished
China’s GDP growth decelerated from 7.6% year on year in
the second quarter to 7.4% in Q3, but the latest data indicate
that a rebound is now under way. This positive trend looks
set to gather strength in the first half of 2013. The mammoth
infrastructure projects initiated by the Chinese government
will take full effect in the months ahead. Consumers are also
showing more confidence again. Retail sales should there-
fore gain momentum. All in all, a GDP growth rate of 8.5% in
2013 seems realistic.
Unpredictable renminbi
The renminbi has appreciated strongly against the US dollar
since last summer, chalking up a net gain of over 3%. Recent
months have seen a sharp rise in the flow of capital into
Asia as the Fed, ECB and Bank of Japan have flooded their
markets with liquidity.
The Bank of China has done nothing to curb the renminbi’s
advance. Its currency reserves have stayed almost unchanged
for over a year now. Thus the renminbi’s performance is in-
creasingly being determined by market forces. Our baseline
scenario sees a continued appreciation. It should not be
forgotten, however, that the exchange rate is susceptible to

manipulation by the Chinese government as an instrument
of economic policy.
Chinese exchange rate
China / Hong Kong
10 | 1
st
quarter 2013 | Countries | China / Hong Kong
If GDP growth slackens again in the coming months, a deval-
uation of the currency cannot be ruled out.
Even in our base-
line scenario we expect the renminbi’s
appreciation against
the US dollar to be only moderate. The
continuing fragile
state of the global economy makes a sharper
rise unlikely.
The Hong Kong dollar is also now trading at the strong end
of its range, reflecting vigorous inflows of foreign capital.
In view of the subdued inflation risk in Hong Kong, we
believe that the Hong Kong dollar’s peg to the US dollar
will be maintained.
Chinese equities still cheap
The Chinese equity market has continued to post a mixed
performance in recent months, with a marked divergence
between Hong Kong and the mainland. Hong Kong compa-
nies (Hang Seng 35) have advanced by over 20% since
the start of June, while the hard-to-access mainland China
market (CSI 300) has been in continuous retreat since
mid-year. Current low valuations (absolute and relative) and
the gradual levelling out of downward profit revisions are

fundamental arguments in favour of a long-term investment
in Chinese equities. The macro turnaround could provide
the trigger for a renewed equity market advance. Investors
should focus on mainland shares with a primary listing in
Hong Kong (China Enterprise Index). This market is trading at
a price/earnings ratio of 8.8, around 40% below its historical
average. It is also cheaper than the Hang Seng and CSI.
USD/CNY
6.0
6.5
7. 0
7. 5
8.0
8.5
2006 2007 2008 2009 2010 2011 2012
11 | 1
st
quarter 2013 | Countries | China / Hong Kong
Highlights
• China is achieving a macroeconomic
turnaround.
• We expect GDP growth to be well
above 8% in 2013.
• The appreciation of the renminbi is
likely to continue, but at a slower pace
than in recent months.
• This is a good moment to move into
Chinese equities.
Selected products China / Hong Kong
Recommended stocks

Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
Cheung Kong Holdings Real estate HK0001000014 HKD 120.40 286,046 12.2 1.2
China Communications Construction Construction & engineering CNE1000002F5 HKD 7.64 113,921 8.6 2.1
China Construction Bank Commercial banking CNE1000002H1 HKD 6.50 1,616,758 6.8 4.5
China Unicom Hong Kong Diversified telecom services HK0000049939 HKD 12.86 299,276 36.4 3.5
CNOOC Limited Oil, gas & consumable fuels HK0883013259 HKD 17.30 765,238 9.1 3.1
Industrial & Commercial Bank of China Commercial banking CNE1000003G1 HKD 5.81 1,880,504 7.0 5.6
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
E.I. Sturdza Strategic China Panda MSCI China Index IE00B3DKHB71 EUR 1,972.12 no 2.30 2.83
Robeco Chinese Equities MSCI China Index LU0187077309 EUR 57.57 no 1.71 1.98
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
Hang Seng Investment Index Fund Hang Seng China Enterprises HK2828013055 HKD 121.20 Full 0.65 5.85
db x-trackers - CSI 300 Index CSI 300 Index LU0455008887 HKD 6.49 Derivative 0.50 5.02
Tracker Fund of Hong Kong Hang Seng Index HK2800008867 HKD 23.55 Full 0.15 3.06
1
as of 03/01/2013
2

Bloomberg estimates
Key economic data
China 2010 2011 2012 2013
% yoy
GDP 10.5 9.3 7.8 8.5
Inflation 3.3 5.4 2.6 2.6
Private consumption 11.5 8.6 8.4 9.2
Fixed-asset investment 7.4 7.6 7.6 3.5
% of GDP
Current account balance 3.9 2.7 2.9 2.8
Central bank key interest rate
Year-end; 2013 latest (%) 5.81 6.56 6.00 6.00
Rating S&P Moody’s Fitch
AA– Aa3 A+
Source: VP Bank; Oxford Economics
Stabilisation in China should have positive impact
Singapore’s growth rate has continued to sag. This city state,
with its heavy reliance on exports, is a victim of the faltering
global economy. As no significant improvement in the world
economic situation is likely until mid-year, Singapore’s
economic momentum will be very meagre compared with
previous years. Accelerating growth in China should have
a stabilising effect, but the Chinese government’s stimulus
measures are directed primarily at the domestic economy.
Thus the impact on Singapore, though beneficial, will not
be on the same scale as in 2009. We are predicting GDP
growth of 3% for Singapore in 2013.
Monetary Authority of Singapore sticks to course
Many observers had expected the Singapore dollar to lose
ground against the US dollar in reaction to Singapore’s

lacklustre economic growth. But our forecast of continuing
SGD strength has proved correct. The Monetary Authority
of Singapore (MAS) is still battling with a relatively high
inflation rate, which was running at 3.6% in November. No
improvement is in sight. Full employment is keeping wage
growth at a high level, and the inflation situation is now
being aggravated by rising food prices. Against this back-
ground we expect the MAS to continue to prefer a stronger
exchange rate.
Long-term Singapore government bonds will probably
continue to track US Treasuries. We regard a substantial
rise in yields as unlikely.
Equities: high valuations and downturn in profit
revisions
The Singapore equity market’s strong correlation with the
global market resulted in a period of relative weakness
after the start of August. Recent weeks have seen some
stabilisation, but the time is not yet ripe for buying into
this market.
A particular concern is the elevated level of valuation ratios.
With a price/earnings ratio of 12.9 for the next 12 months,
Singapore is slightly below its historical average but remains
rather expensive in absolute terms compared with the rest
of Asia and the global average.
Singapore: equity market valuation
Singapore had previously
been able to buck the trend to-
wards downward profit revisions, but this immunity now
appears to be over. The analyst community is currently fore-
casting profit growth

of 4.8% in 2013 – a figure that hardly
justifies the market’s high price/earnings ratio.
We are sticking to our neutral assessment of Singapore, though
high valuations and downward profit revisions suggest that the
balance of probability is slightly on the downside.
Singapore
12 | 1
st
quarter 2013 | Countries | Singapore
EPS 2013 consensus forecast (% change yoy)
P/e ratio (12m forward, r-h scale)
0
2
4
6
8
10
12
14
16
FMAMJ J ASOND FMAMJ JASONDJ
0
2
4
6
8
10
12
14
16

13 | 1
st
quarter 2013 | Countries | Singapore
Highlights
• Singapore is being negatively affected
by its openness to the global economy.
The consensus growth forecast for the
year ahead looks overoptimistic.
• The Monetary Authority will stick to its
present course and continue to favour a
strong exchange rate.
• The Singapore stock market is highly
correlated with global equity markets.
Selected products Singapore
Recommended stocks
Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
DBS Group Holdings Commercial banking SG1L01001701 SGD 14.84 36,063 10.5 -
Keppel Corp. Industrial conglomerate SG1U68934629 SGD 11.08 20,007 10.4 0.7
StarHub Wireless telecom services SG1V12936232 SGD 3.78 6,433 19.1 –0.3
UOL Group Real estate SG1S83002349 SGD 6.03 4,712 13.1 1.0
Yangzijiang Shipbuilding Machinery SG1U76934819 SGD 1.01 3,909 5.8 4.7
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %

1
Equities
JF Singapore MSCI Singapore Index LU0210528336 USD 28.65 no 1.90 1.74
Aberdeen Singapore Singapore Straits Time Index SG9999002976 USD 2.26 no 1.67 0.89
Amundi Singapore Dividend Growth MSCI Singapore Index SG9999001952 SGD 1.82 yes 1.46 2.02
Fixed income
Lion Global SGD Money Market Citigroup SGD 3 Mt Deposit SG9999002760 SGD 1.23 no 0.32 0.01
Schroder SGD Reserve Citigroup SGD 3 Mt Deposit SG9999000517 SGD 11.29 no 0.36 0.00
Lion Global Singapore Fixed Income Singapore Gov Bond Index SG9999003263 SGD 1.48 no 0.64 –0.20
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
Nikko AM Singapore STI ETF Straits Times Index SG1X52941694 SGD 3.27 Full 0.48 1.55
1
as of 03/01/2013
2
Bloomberg estimates
Key economic data
Singapore 2010 2011 2012 2013
% yoy
GDP 14.8 4.9 1.6 3.0
Inflation 2.8 5.3 4.6 2.9
Private consumption 6.5 4.2 2.2 3.5
Fixed-asset investment 7.0 3.3 5.2 3.4
% of GDP
Current account balance 24.3 21.9 14.6 8.6
Rating S&P Moody’s Fitch
AAA Aaa AAA

Source: VP Bank; Oxford Economics
Focus on elections
The mainstay of the Malaysian economy this year will be
domestic demand. Capital spending will provide major
impetus, while tax cuts for low incomes will underpin private
consumption. Net exports, however, will have a negative
effect on GDP growth, reflecting the becalmed global economy.
Attention is focusing on the upcoming parliamentary elections.
A date for the ballot has not yet been set, but it has to be
held no later than June. The outcome is uncertain, but we
expect the ruling National Front coalition to be confirmed in
office. If that happens, the process of budget consolidation
will continue. Reductions of high government subsidies
will probably be near the top of the agenda. We regard GDP
growth of 4.2% for 2013 as a whole as realistic.
Inflation likely to rise
We believe the Malaysian government will stick to its policy
of subsidy reduction, notably in the sugar and oil sectors.
This, together with the recent jump in agricultural prices,
suggests an acceleration of inflation. The Central Bank of
Malaysia is expected to keep its key rate steady at 3% for
the time being. In view of the robust economy, we forecast
a further gradual appreciation of the ringgit.
Equities: high valuation and weak performance
Despite the weak long term performance of Malaysian equi-
ties the market has recovered significantly in recent weeks.
However, investors should not be tempted to move into
this extremely defensive and somewhat to move into this
extremely defensive and somewhat illiquid market.
Relative performance of Malaysian equities

Malaysian equities are fairly valued compared with their
historical average, but the (absolute) premium over other
Asian countries is an anomaly that cannot be explained
away by differences in long-term profit growth. Profit
forecasts are being continuously downgraded, and any
investment decision should be postponed until this process
levels out. When that will happen is hard to say. Profit
forecasts for 2013 have already been pruned by 3% since
last July.
Like most Asian emerging markets, Malaysia is interesting on
the basis of its long-term growth outlook and as a portfolio
diversifier. But there are much more attractive markets else-
where in Asia.
Malaysia
14 | 1
st
quarter 2013 | Countries | Malaysia
Malaysia / EM Asia (USD)
0.70
0.75
0.80
0.85
0.90
0.95
1.00
1.05
Dec
10
Feb
11

Apr
11
Jun
11
Aug
11
Oct
11
Dec
11
Feb
12
Apr
12
Jun
12
Aug
12
Oct
12
Dec
12
15 | 1
st
quarter 2013 | Countries | Malaysia
Highlights
• Pre-election handouts by the Malaysian
government are fuelling economic growth.
• Liberalisation measures should strengthen
the ringgit in the coming months.

•
Unlike the economy, Malaysia’s equity market
is rather domestically oriented. Shares are
now expensive.
Selected products Malaysia
Recommended stocks
Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
Dialog Group Construction & engineering MYL7277OO006 MYR 2.42 5,784 26.6 0.8
IJM Land Real estate MYL5215OO008 MYR 2.15 2,999 14.0 –10.4
Parkson Holdings Multiline retail MYL5657OO001 MYR 4.99 5,324 14.4 –4.0
Petronas Chemicals Group Chemicals MYL5183OO008 MYR 6.28 50,480 14.5 –1.9
Petronas Dagangan Oil, gas & consumable fuels MYL5681OO001 MYR 23.28 22,830 23.9 –0.9
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
Aberdeen Malaysia FTSE Bursa Malaysia KLCI Index SG9999001895 USD 3.64 no 1.70 0.28
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
db x-trackers MSCI Malaysia MSCI Malaysia LU0514694370 USD 14.39 Derivative 0.5 –
1

as of 03/01/2013
2
Bloomberg estimates
Key economic data
Malaysia 2010 2011 2012 2013
% yoy
GDP 7.2 5.1 5.1 4.2
Inflation 1.7 3.2 1.7 2.6
Private consumption 6.6 7.1 8.0 5.0
Fixed-asset investment 10.4 6.5 20.7 2.8
% of GDP
Current account balance 11.1 11.0 4.8 2.8
Central bank key interest rate
Year-end; 2013 latest (%) 2.75333
Rating S&P Moody’s Fitch
A– A3 A–
Source: VP Bank; Oxford Economics
Trade deficit
Indonesia’s economic growth last year was in line with our
expectations. Performance was dynamic compared with
most of Asia. An estimated GDP growth rate of 6.2% in 2012
makes Indonesia one of the fastest-growing economies in
the world. All the signs are that this momentum will be main-
tained. Rapid investment growth and strong private con-
sumption are the mainstays of expansion. Foreign trade, by
contrast, has been extremely disappointing, with nominal
exports suffering massive falls since spring 2012. This partly
reflects the softness of global demand. Another factor
was the failure of palm oil and coal to recover from the price
collapse in September. These commodities are important

components of Indonesia’s export effort. As import growth
remained relatively robust, the merchandise trade balance
was in the red. Thus the current account is now in deficit
again for the first time since the Asia crisis in the late 1990s.
We expect little change in the fundamental macro situation
this year. GDP growth in 2013 should be on levels seen in
2012.
Investors expected to favour rupiah
The Indonesian rupiah continued to backtrack in 2012, shed-
ding 7% of its value against the US dollar. The Indonesian
central bank is already intervening on the forex markets to
head off a further retreat. The appreciation that we forecast
has not yet materialised, but we expect to see a turnaround
in 2013. Stable economic growth and interest rate hikes
argue for appreciation. Moreover, the rupiah has ground
to make up against other Asian currencies, some of which
have posted significant gains. We expect investors to focus
on this upside potential in 2013 and to take long positions
in the rupiah. The Indonesian central bank will probably
continue to raise its key interest rate step by step, but long-
dated Indonesian government bonds will largely move side-
ways in the wake of US Treasuries.
Equity market valuation: Indonesia vs. other markets
Equities: high valuations and structural headwind
Thanks to its strong domestic orientation, the Indonesian
equity market has not been affected by the prevailing uncer-
tainty about global economic growth in recent months. This
is also reflected in the fundamentals. Price/earnings and
price/book ratios are very high compared with other Asian
markets and also well above the historical average. At the

same time, earnings revisions and reported profit growth are
trending downwards. Sales growth is extremely buoyant
compared with other countries, but rising costs (due mainly
to the hike in the minimum wage) will prevent this from
translating fully into higher profits. The increased minimum
wage will give a further boost to already solid consumer
spending. Shares in the consumer goods and retail sectors
will benefit from this, though the upside potential is limited
by already high valuation ratios. On the other hand, higher
wage costs are squeezing margins in manufacturing compa-
nies and the energy sector. Energy companies are also having
to cope with a steep fall in the price of coal.
We regard the opportunity/risk ratio of the Indonesian equity
market as unattractive in view of elevated valuations and the
generally negative impact of the higher minimum wage.
Indonesia
16 | 1
st
quarter 2013 | Countries | Indonesia
13.5
10.2
8.1
13.9
12.8
10.5
9.8
10.1
11.9
3.0
1.3

1.0
1.9
1.3
1.9
1.3 1.4
1.5
0
2
4
6
8
10
12
14
16
Indonesia
Hong Kong / China
Korea
Malaysia
Singapore
Thailand
MSCI EM
MSCI EM Asia
MSCI World
Price/earnings Indonesia 2013e
Price/earnings 2013e
Price/book 2013e
17 | 1
st
quarter 2013 | Countries | Indonesia

Highlights
• Private consumption and capital spending
remain the principal drivers of economic
growth in Indonesia.
• The Indonesian rupiah is likely to appreciate
in the medium term.
• The equity market is expensive, and
earnings revisions and profit growth are
trending downwards
• The hike in the minimum wage reduces
profitability in the energy and industrial
sectors.
Selected products Indonesia
Recommended stocks
Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
Bank Rakyat Indonesia Persero Commercial banking ID1000118201 IDR 7,200.00 182,551,792 10.7 3.6
Indo Tambangraya Megah Oil, gas & consumable fuels ID1000108509 IDR 42,650.00 47,004,880 10.2 2.6
Summarecon Agung Real estate ID1000092406 IDR 1,900.00 13,705,443 23.0 –
Telekomunikasi Indonesia Persero Diversified telecom services ID1000099104 IDR 9,000.00 185,472,000 13.4 –0.6
Unilever Indonesia Household products ID1000095706 IDR 22,100.00 165,571,008 34.0 6.0
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1

Aberdeen Indonesia Jakarta Composite Index SG9999001887 USD 5.82 no 1.71 0.87
Fidelity Indonesia MSCI Indonesia Index LU0055114457 USD 29.82 yes 2.03 3.36
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
db x-trackers - MSCI Indonesia MSCI Indonesia LU0476289623 USD 15.16 Derivative 0.65 –0.20
1
as of 03/01/2013
2
Bloomberg estimates
Key economic data
Indonesia 2010 2011 2012 2013
% yoy
GDP 6.2 6.5 6.2 6.2
Inflation 5.1 5.4 4.3 4.8
Private consumption 4.7 4.7 5.4 5.6
Fixed-asset investment 8.48 8.82 9.35 6.57
% of GDP
Current account balance 0.7 0.2 –2.1 –1.4
Central bank key interest rate
Year-end; 2013 latest (%) 6.5 6 5.75 5.75
Rating S&P Moody’s Fitch
BB+ Baa3 BBB–
Source: VP Bank; Oxford Economics
Faster growth feasible
Korea’s growth rate suffered a further marked slowdown in
the second half of 2012. This export-oriented economy has
been hit hard by the global slowdown. Figures for the whole

of 2012 are not yet available, but growth will probably come
in at around 2%. Exports are now showing signs of stabilising
after massive year-on-year falls during the summer. The main
source of support has been the recovery in China. As we
expect China to continue to gather momentum in the coming
quarters, South Korea should soon be able to find its way
onto a faster growth track. Help is also coming from the
central bank, whose latest statements have stressed the need
to shore up the economy. Investment and private consump-
tion are to be encouraged by monetary easing. We expect
GDP growth to accelerate to somewhere in the region of 3%
this year.
Central bank focuses on economic growth
Korea’s inflation rate picked up again in late 2012, climbing
from 1.2% in August to 2.1% in October. The main reason
was higher food prices. Recently the CPI fell back to 1.4%.
A further acceleration is likely, though this will probably be
only temporary. In its statements in recent weeks the South
Korean central bank has shifted its focus towards bolstering
the flagging economy. Despite rising inflation, interest rate
cuts could therefore be on the agenda (current key interest
rate: 3%). This would also benefit long-term Korean govern-
ment bonds. Meanwhile, the Korean
won has been relatively
strong against other Asian currencies,
supported by flows
of foreign capital into the Korean bond market. Even so,
we still expect the central bank to favour a weaker won in
the coming weeks as a means of revitalising the economy.
Heavyweights make equities attractive in long term

The Korean equity market remains very favourably valued
both in absolute terms and in comparison with its historical
average, despite very high expected profit growth. However,
current overoptimistic expectations will probably have to be
revised downwards. This process was already observable
in the last quarter of 2012 and is likely to continue. Looking
at the various sectors, the heavyweight IT industry (32%
weighting) presents a convincing picture of positive profit
revisions and low valuations. This sector is dominated by
electronics giant Samsung, which exports more than 80%
of its products. Samsung’s activities are spread across the
whole production chain of the consumer electronics sector,
enabling it to achieve above-average profit growth. Other
index heavyweights are the automobile concerns Hyundai
and Kia. These firms sell just under 50% of their vehicles in
the home market, where sales are underpinned by the central
bank’s accommodative monetary policy. Exports are growing
more strongly, and market share is being expanded in many
countries. We believe that the presence of these heavy-
weights, combined with favourable valuation levels, makes
the Korean equity market attractive for long-term investors.
Development 2012 earnings growth (yoy) by sector
South Korea
18 | 1
st
quarter 2013 | Countries | South Korea
30 September 2012 3 January 2013
-60%
-40%
-20%

0%
20%
40%
60%
80%
100%
MSCI
Korea
CD CS EN FI HC IN IT MT TC
19 | 1
st
quarter 2013 | Countries | South Korea
Highlights
• South Korea’s growth rate has continued
to flag.
• Accelerating activity in China will have a
positive impact.
• The central bank is focusing increasingly
on bolstering the economy.
•
The South Korean equity market is favourably
valued in absolute terms and relatively.
• The index heavyweights will generate an
above-average performance in the long term.
Selected products South Korea
Recommended stocks
Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1

(millions) 2013E
2
Hyundai Motor Automobiles KR7005380001 KRW 206,000 45,927,648 5.7 –5.7
Hana Financial Group Commercial banking KR7086790003 KRW 36,700 8,944,231 6.8 5.8
LG Display Electronic equipment KR7034220004 KRW 31,650 10,752,362 40.5 1.9
Samsung Electronics Semiconductors & products KR7005930003 KRW 1,543,000 223,894,976 8.2 1.4
POSCO Metals & mining KR7005490008 KRW 370,000 32,171,942 11.5 6.0
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
Invesco Korea KOSPI Index IE0003842543 USD 23.09 yes 2.37 –0.35
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
db x-trackers - MSCI Korea MSCI Korea LU0292100046 USD 63.24 Derivative 0.65 2.16
XIE Shares Korea KOSPI 200 ETF KOSPI 200 Index HK0000098860 HKD 8.59 Derivative 0.39 3.12
1
as of 03/01/2013
2
Bloomberg estimates
Key economic data
South Korea 2010 2011 2012 2013
% yoy
GDP 6.3 3.6 2.1 3.0
Inflation 2.9 4.0 2.2 2.4
Private consumption 4.4 2.3 1.7 2.7

Fixed-asset investment 5.8 –1.1 -0.2 3.4
% of GDP
Current account balance 2.9 2.4 3.5 2.4
Central bank key interest rate
Year-end; 2013 latest (%) 2.5 3.25 2.75 2.75
Rating S&P Moody’s Fitch
A+ Aa3 AA–
Source: VP Bank; Oxford Economics
Weaker growth in 2013
The question whether Thailand’s economic growth in 2013
will be weaker or stronger than in 2012 is quickly answered:
weaker. GDP was boosted last year by reconstruction after
the flood disaster. This effect is now petering out. At the
same time, the sputtering global economy will put a brake
on exports. GDP growth looks set to decelerate from 5.2%
last year to 4.5% in 2013. The Thai government is expected
to push ahead with its policy of expansive public expendi-
ture, though not on the same scale as in 2012. This will have
a substantial impact on public finances. A budget deficit
exceeding 3% of GDP will drive public debt towards 50% of
GDP. The rating agencies will not take kindly to this.
Central bank favouring weaker baht?
The Bank of Thailand has resumed the downward pressure
on interest rates. In October it cut its key lending rate by
25 basis points after a ten-month pause. Monetary relaxation
was necessitated by the faltering world economy and its
impact on Thailand. The lacklustre global environment might
also prompt the central bank to prefer a weaker baht in future.
We therefore expect a slight softening of the exchange
rate in the coming months, possibly to around TBH 32 per

US dollar. Long-term Thai government bonds, on the other
hand, are expected to drift sideways initially. A further
significant fall in yields is unlikely unless the Thai economy
moves towards recession, which is highly improbable. On
the other hand, a substantial rise in yields would require an
unexpectedly buoyant economy flanked by rising interest
rates in the US. There is no evidence for that at present.
Equities supported by fundamentals
and structural changes
Thailand’s equity market recently hit a 16-year high. This
was achieved despite a rather downbeat corporate results
season. In fact, however, disappointment about published
results was mainly a reflection of overoptimistic analysts’
forecasts. Earnings revisions for this year are also slightly
negative. Although profit growth is slightly lower than the
historical average, it is still the highest in Asia. The market’s
valuation is at an appropriate level though somewhat
distorted by sector weightings. Index heavyweights in the
finance and energy sectors are cheap and all other sectors
rather expensive. Structurally, the equity market is further
supported by strong private consumption, rising local de-
mand for equity investments (due partly to pension reform)
and various planned infrastructure projects. The only down-
side is the political risk, which is not higher (in fact lower)
than in past years. The growing number of domestic equity
investors should have a stabilising effect. The financially
sound and attractively valued banking sector is profiting from
the trend towards asset diversification. Wealth used to be
invested almost entirely in land and houses, but now there
is a growing trend towards putting savings into investment

funds and pension products.
Thailand: key interest rate
Thailand
20 | 1
st
quarter 2013 | Countries | Thailand
Official central bank rate
0%
1%
2%
3%
4%
5%
6%
2006 2007 2008 2009 2010 2011 2012 2013
21 | 1
st
quarter 2013 | Countries | Thailand
Highlights
• Thailand’s economic growth will slow down
in 2013.
• The rating agencies are taking a critical look
at Thailand.
• The central bank would probably prefer a
weaker baht.
• The equity market is supported by good
fundamentals and structural changes.
Selected products Thailand
Recommended stocks
Company Industry group ISIN Curr. Price

1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
Advanced Info Service Wireless telecom services TH0268010Z11 THB 205.00 606,511 16.5 –1.9
Bangkok Bank Commercial banking TH0001010014 THB 194.00 376,996 11.6 –0.8
Charoen Pokphand Foods Food products TH0101A10Z19 THB 34.75 269,067 17.1 3.0
CP ALL PCL Food & staples retailing TH0737010Y16 THB 44.50 406,485 37.5 –3.3
PTT Exploration & Production Oil, gas & consumable fuels TH0355A10Z12 THB 169.00 664,973 10.4 3.0
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
Fidelity Thailand Bangkok SET Index LU0048621477 USD 48.42 yes 1.98 2.45
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
db x-trackers MSCI Thailand MSCI Thailand LU0514694701 USD 20.69 Derivative 0.50 –
XIE Shares Thailand SET 50 ETF Set 50 Index HK0000098902 HKD 10.14 Derivative 0.39 2.22
1
as of 03/01/2013
2
Bloomberg estimates
Key economic data
Thailand 2010 2011 2012 2013
% yoy

GDP 7.8 0.1 5.2 4.5
Inflation 3.3 3.8 3.1 2.8
Private consumption 4.8 1.3 6.3 4.6
Fixed-asset investment 9.4 3.3 15.7 4.6
% of GDP
Current account balance 3.1 1.7 0.5 1.1
Central bank key interest rate
Year-end; 2013 latest (%) 2 3.2 2.75 2.75
Rating S&P Moody’s Fitch
BBB+ Baa1 BBB
Source: VP Bank; Oxford Economics
Economy outperforming other industrialised countries
The Australian economy grew robustly in 2012 before slack-
ening towards the end of the year. Historically weak growth
in China has put a brake on Australia’s forward momentum.
The mining boom, which was one of the main engines of
growth in previous years, now seems to be fizzling out. With
private consumption being hit by falling house prices and
the government also increasingly reluctant to spend, there is
nothing to take up the slack left by reduced mining activity. We
expect GDP growth of 2.5–3% this year, after 3.5% in 2012.
Australian exchange rate
AUD firm despite monetary easing
The Reserve Bank of Australia is cutting interest rates more
sharply than expected in reaction to the slowdown. It low-
ered its key rate by a total of 125 basis points in 2012, bring-
ing it to 3% at present. These moves have so far not caused
any sustained weakening of the Australian dollar. The
“Aussie” is still basking in its safe haven status. Abundant
natural resources, a relatively stable domestic economy and

public debt amounting to less than 30% of GDP make this
country an attractive destination for worried investors. In our
view, however, the Aussie is still a depreciation candidate.
It is now significantly overvalued against the US dollar, as evi-
denced by the sluggish performance of industries sensitive to
the exchange rate. The widening deficit on current account
is also a telling indicator. We regard the opportunity/risk pro-
file of the Australian currency as unfavourable. A further
moderate appreciation against the US dollar cannot be ruled
out, but the risk of a substantial depreciation is high.
Unattractive equity market with few bright spots
Falling profit expectations, historically above-average valua-
tions and a mixed outlook for financials and mining (these
heavyweight sectors together account for about 60% of
market capitalisation) paint an unattractive picture of the
Australian equity market. Nor does the picture improve on
closer inspection. An important factor is the high level of the
Australian dollar, which is bad for the equity market for two
reasons: exporters are handicapped by reduced competitive-
ness, and the prospect of currency losses will deter foreign
investors from large-scale buying of Australian shares. At the
same time, retailers, media companies and building firms are
being hit by muted consumer spending and crumbling house
prices. This also affects the relatively cheap banking sector,
which has to grapple with lower credit growth, narrowing
margins and rising loan loss provisions. Profit forecasts for all
these sectors therefore look increasingly unrealistic. We are
somewhat more positive about mining companies like BHP
Billiton and Rio Tinto. In contrast to other sectors, profit fore-
casts for the mining industry have already been downgraded

aggressively. Even so, valuation ratios in this sector remain
attractive, and the economic recovery in China creates
potential for positive surprises. Investors will also continue
to favour shares with a high dividend yield. These can be
found, for example, in the utilities and real estate (REITs)
sectors.
Australia
22 | 1
st
quarter 2013 | Countries | Australia
AUD/USD
0.5
0.6
0.7
0.8
0.9
1
1.1
1.2
2005 2006 2007 2008 2009 2010 2011 2012
23 | 1
st
quarter 2013 | Countries | Australia
Highlights
• Australia is performing extremely robustly
compared with other industrialised countries,
though the sluggish global economy is having
an impact.
• The Australian dollar is now regarded as
a safe haven currency, but we believe it is

vulnerable to major depreciation.
• The equity market is undermined by an
unfavourable macro environment combined
with retreating profit expectations and high
valuation ratios.
Selected products Australia
Recommended stocks
Company Industry group ISIN Curr. Price
1
Market cap. P/E YTD perf. %
1
(millions) 2013E
2
Australia & New Zealand Banking Group Commercial banking AU000000ANZ3 AUD 25.18 69,715 11.2 0.5
BHP Billiton Metals & mining AU000000BHP4 AUD 38.15 191,450 15.0 2.8
Lend Lease Group Real estate AU000000LLC3 AUD 9.49 5,416 10.4 2.3
Origin Energy Oil, gas & consumable fuels AU000000ORG5 AUD 11.79 13,019 15.3 1.5
Actively managed funds
Product name Benchmark ISIN Curr. NAV
1
Payout TER (%) YTD perf. %
1
Fidelity Australia MSCI Australia LU0048574536 AUD 43.88 yes 1.93 1.67
Exchange traded funds (ETFs)
Product name Benchmark ISIN Curr. Price
1
Replication TER (%) YTD perf. %
1
db x-trackers S&P/ASX 200 S&P/ASX 200 TR LU0328474803 USD 38.83 Derivative 0.5 –
1

as of 03/01/2013
2
Bloomberg estimates
Key economic data
Australia 2010 2011 2012 2013
% yoy
GDP 2.5 2.1 3.5 2.5
Inflation 2.9 3.4 1.7 1.9
Private consumption 2.9 3.3 3.6 1.9
Fixed-asset investment 4.9 7.1 7.0 2.2
% of GDP
Current account balance –3.0 –2.3 –4.1 –5.4
Central bank key interest rate
Year-end; 2013 latest (%) 4.75 4.25 3.00 3.00
Rating S&P Moody’s Fitch
AAA Aaa AAA
Source: VP Bank; Oxford Economics
24 | 1
st
quarter 2013 | Investment management mandates
Your success – our philosophy
In this era of mass information, picking out and evaluating
the facts and figures that are relevant to the pricing and
performance of financial assets is no easy business.
But today's rapidly expanding range of products makes it
all the more important to find the best instruments for
the effective implementation of investment ideas. We at
VP Bank are ready to perform this demanding task on
your behalf. Our approach is firmly centred on your needs
and aspirations. The starting point is a personal meeting

in which we discuss your risk/return preferences, liquidity
needs and investment horizon and draw up an optimal
long-term strategy for your assets. On the basis of this
personalised strategic allocation, we then generate added
value by means of a disciplined investment process. Clearly
defined procedures and efficient decision-making enable us
to guarantee the utmost professionalism in the formulation,
Investment management mandates
Risk
Return
Bonds Equities Alternative investments
Equity allocation
Investment horizon
Liquidity requirement
Expected return
20%
5 years
Conservative
35%
7 years
Balanced
50%
10 years
Growth
implementation and monitoring of investment decisions.
Our range of investment management mandates offers
dedicated solutions for the discretionary management of
your assets. By entrusting us with this important task, you
gain freedom and time for other activities while profiting
from a professional and disciplined implementation of your

indi vidual investment strategy.
For detailed information on our investment management
mandates, please contact your personal advisor.
25 | 1
st
quarter 2013 | Investment management mandates
Current investment tactics
The announcement by the European Central Bank that it is
ready if necessary to make unlimited purchases of government
bonds has injected calm into the financial markets. European
equity markets have staged an impressive year-end rally in
some cases. In general, risk assets have benefited from the
less nervous environment. Looking ahead to 2013 we expect
the world economy to remain fragile. But low interest rates
and the quest for positive returns should continue to drive
money into equities. At the same time, globally-oriented
companies will again be helped in 2013 by the upturn in the
emerging economies.
VP Bank’s strategic asset allocation guarantees a broad
spread of investments across all asset classes. A diversified
portfolio of bonds, equities and alternative investments
(commodities, private equity, real estate, convertible bonds
and hedge funds) promises long-term investment success.
Strategic allocations are enhanced by ongoing tactical
adjustments.
VP Bank is currently pursuing a moderately conservative
policy in its Asia mandates. This is reflected in a relatively
high cash position. European shares and private equity
are underweighted. We prefer Asian emerging markets to
Latin America in view of their more favourable relative

valuation and better growth prospects.
In the bond sector, the pricing of emerging market hard
currency bonds is now fair to expensive. We are still over-
weighted in this sector, but we prefer local currency bonds
in the Asia-Pacific area at the expense of US Treasuries and
corporate bonds. We still regard high yield bonds as attrac-
tive in view of their yield pick-up.
Asia mandate
Investor
motivation
Asian focus
Investment
strategies /
risk profiles
Strong Asian bias whilst
maintaining global diversification
Substantial Asian bond and equity positions,
Asian bias in instrument selection
3 investment strategies / risk profiles