Lobo's Investment

China made a deal on free trade in goods with ASEAN in 2004. This was a reason I bought in the ASEAN fund in 2004; thinking that free trade with a large economy would boost the small equity markets of ASEAN. And a deal on services is made this year. Although I think a service deal would benifit less to ASEAN as the pervious goods deal, a strong growth in ASEAN countries is still expected. Banks and IFAs started to propose ASEAN fund this year. The fund sales and the subsequent money inflow would reinforce the growth. The money inflow would be shown in this year's fund annual report.

Japan and ASEAN decleared that they would seek an FTA by the year's end. The economic data published by Japan recently is really disappointing. I have no more reason to hold any Japan fund. Investing in Japan fund was the worst investment decision I had made in the past few years. I need to self reflect on this.



In Europe, the proposed take over ABN AMRO sinaling an increase in financial integration. There was a change in regulation rules - lighter rules from the EU finance instead of the previous local rules. That implies cheaper capital and lower cost of trade amoung the Euro countries. The integration of Europe is a trend towards another financial superpower. That justify an overweight in the position of Europe.