Baring Asset Management has announced the conversion of its Baring Pacific Fund to the Baring ASEAN (Association of South-East Asian Nations) Frontiers Fund as a result of growing investor demand for the opportunities available in the smaller Asian markets.

The fund’s objective will now be mainly focused on South-East Asian markets, and will aim to provide long-term capital growth by investing primarily in the equity markets of the ASEAN region.

It will employ an actively managed strategy using a Growth at a Reasonable Price investment philosophy and the number of holdings is expected to remain in the region of 40 to 50.

SooHai Lim, manager of the Baring ASEAN Frontiers fund, says, ‘More than a decade on from the Asian financial crisis of 1997, we believe Asia’s Tigers are ready to pounce again.

‘Government and corporate balance sheets have restructured, current account deficits have turned into surpluses, fiscal deficits have been reined in, and local currencies are on the rise.’

According to Barings, some of the markets with the greatest growth potential can be found amongst the members of ASEAN, in countries such as Singapore, Malaysia and the Philippines.

‘With a total population base of over 500 million, and a combination of rich natural resources and world-class business expertise, we expect the major ASEAN economies to deliver superior GDP growth rates well into the medium to long term, leading to a robust earnings environment for individual markets.’

Lim suggests that, until now, most investors have focused on the remarkable changes taking place in China. But he points out that other countries in the region have benefited from this very supportive environment too.

He says, ‘Singapore, for example, arguably the most developed, has repositioned itself as an alternative private banking centre for not just wealthy Asians, but investors from the Middle East and Europe.

‘Indonesia, Malaysia and Thailand are major suppliers of commodities to their giant neighbours in Asia; Indonesia is one of the largest exporters of coal and tin. The Philippines’ most successful export, a well-educated English-speaking population found all around the world, is also underwriting an economic boom through the remittance of their hard-earned savings.’

The minimum investment for the fund is £2,500 and it will have an annual management fee of 1.25 per cent. For more information, visit www.barings.com