Thai equities have mostly recovered after plunging in the wake of the death of the King, but now the military-appointed government is attempting to navigate official approval of a new constitution and handle the first royal succession in seven decades.
Real estate investment trusts may see total returns come off recent highs by the end of calendar year 2016, as energy infrastructure and dividend-paying stocks take the lead among equity assets that provide regular income, said Mark McAllister, senior portfolio manager at Clearbridge Investments, a Legg Mason affiliate.
Investors have been pouring into income-generating products, but two big portfolio risks are coming from the US, said Edmund Yun, head of investment solutions at CIC Banque Privee in Hong Kong.
After a top management reshuffle, the UK-based boutique manager now intends to focus on expanding in Asia and the US, according to Gavin Rochussen, group executive for international business at BT Investment Management, which owns JOHCM.
Relaxed regulations for Thai investors promise more access to global funds, but take-up could be slow because they compete with locally-wrapped funds, said Morningstar's senior research analyst in Thailand, Kittikun Tanaratpattanakit.
But the surge in emerging market bond prices this year is forcing investors to be more discriminating.
The strategy aims to capture emerging market yields and `new economy’ growth at a time when yield is hard to find, according to HSBC Private Bank’s Fan Cheuk Wan, head of investment strategy in Asia.
The wealth manager has added mainland-based clients who seek offshore assets to protect their wealth, according to Daniel Brunner, executive director and senior client relationship manager.
Emerging market equities are attractive despite China risk and a possible US rate hike this year, argues Lombard Odier Investment Managers client portfolio manager, Pascal Menges.