MANILA, Philippines?Stocks in equity markets around Asia will likely outperform their peers from around the world, especially at a time when more advanced economies are coming under a great deal of financial stress.

Because of this, fund managers of ATR KimEng Asset Management Inc. (ATR AM) have created an investment vehicle that would allow local clients to participate in the growth of Asian stocks.

According to ATR AM managing director Mike Ferrer, the so-called AsiaPlus Recovery Fund will allow local investors to diversify into Asian stocks and to participate in the growth stories of our regional neighbors.

?Asian equities provide a compelling diversification option for investors, because they present opportunities for strong returns with less volatility or risk,? he said. ?The region (excluding Japan) is expected to lead the global economic recovery, which we think is still in its infancy.?

?Asian economies are poised to grow by about 8 percent this year and Asian corporate earnings are expected to rise by 27 percent,? Ferrer added.

With this scenario in mind, ATR AM launched last week its mutual fund which seeks capital growth by investing in a diversified portfolio consisting mainly of listed stocks in the Asian region.

ATR AM vice president and fund manager for international equities Julian Tarrobago pointed out, however, that the fund is not limited to investing in the Asia as it may, from time to time, invest in equity markets outside the region.

ATR AM officials explained that this arks the first time Filipino investors can gain access to Asian and international stocks through a local mutual fund which is legal and registered with the Securities and Exchange Commission.

?The fundamental story is strong, fueled by a combination of stronger domestic economies, low interest rates, acceptable inflation, favorable corporate earnings prospects, strong balance sheets and inexpensive valuations,? Tarrobago explained. ?There is no structural debt concern in Asia, excluding Japan, and the risk of significant and immediate monetary tightening appears minimal.?

To achieve the investment objective, the fund manager plans to invest 50 to 90 percent of the portfolio in offshore-domiciled equity funds, and as much as 40 percent in individual equity securities listed in other countries.

The fund will be invested in offshore Asian equity funds managed by global and regional fund managers as well as boutique and specialist managers.