To initialize free trade and economic co-ordination the ASEAN members joined hands together. Today the ASEAN members comprise of the five initial members: Indonesia, Philippines, Malaysia, Thailand and Singapore later followed by Vietnam, Cambodia, Laos, Thailand, Malaysia, Philippines, Burma, East Timor and Brunei.
Grippingly 23.1 percent of the preponderance of the allocation of the Global X ASEAN 40 Index ETF [ASEA] is inclined towards Malaysia and a 37.5 percent weight to allocation towards Singapore. Known to have a low beta, Malaysia scores well above the other emerging developing markets of this region. Off Lately the Fund has reported a market cap of 47.04m.
The healthy trends in domestic consumption and capital spending of the economies of Southeast Asia especially the Philippines, Thailand and Indonesia have posed as winners for the inflow of foreign investments into this area. Their fiscal and monetary policies have helped to sustain and encouraged to invest in Southeast Asia. These markets belonging to the Southeast Asia block are pumping in the middle of rallies, which is quite visible in the figures relating to the net worth of the Market capitalization of the region. The IMF has a positive forecast for the respective economies. The region is predicted to show escalating wages and low levels of unemployment. The demographic welfare of the same is going good guns and is benefited by the positive attitude of the export-oriented trade ties among the ASEAN Members. Singapore's Ministry of Trade and Industry has scored exceedingly well and has banked on its erudite workforce.
The trade is focused on the electronics and oil refineries sector as it serves as the biggest sea and air port in the region. The travel and tourism industry of the bloc is also in full boon. The area provides the best luxurious spots with the safest environments to its credit. The environment of the region is gratified and figures showing good GDP levels only support the economies further. The increase in the domestic demand has lead to investments in its infrastructure. The strong foreign direct investment has show the way to trends in credit growth and property prices. The local currencies are reflecting sturdy rates as compared to the US Dollars, and boosting up the confidence of the South bloc of Asia.
The top ten holders of the assets of the fund are DBS GROUP HOLDINGS LTD., OVERSEA-CHINESE BANKING C, SINGAPORE TELECOMM, UNITED OVERSEAS BANK, MALAYAN BANKING BERHAD, KEPPEL, CIMB GROUP HLDINGS BERHAD, ASTRA INT'L, PT BANK CENTRAL ASIA and AXIATA GROUP BERHAD respectively. The major share of the assets belongs to the Financials, Telecommunication Services and Industrials sector followed by the Energy Sector. The combined percentage of these allocations comprises of approximately 82 % of the total assets of the Fund.
The Post election scenario of Malaysia shows the foreign flow of investments has already shown an all time high. Prime Minister Najib Razak's victory has proved favorable to the economy, and the country is ready for a roller coaster ride. The Singapore ETF and Thailand ETF are fairing good in the same bandwagon and are in full control of their leadership.