The Sartorial Portfolio is a curated, hypothetical portfolio of publicly listed companies whose businesses are closely aligned with classic menswear, craftsmanship, and enduring style.

It represents a focused attempt to track — and better understand — the long-term investment performance of firms operating at the intersection of tailoring, textile heritage, and quiet luxury.

While much of the global fashion industry is driven by trends and seasonality, the companies included in this portfolio are distinguished by their commitment to timeless design, product integrity, and brand durability. These are businesses that, in different ways, reflect the principles of classic sartorial culture: restraint, quality, and longevity.

The portfolio is constructed not as a trading vehicle, but as a long-term observational framework — one that allows readers to follow how a select group of sartorially relevant companies perform over time, both operationally and in the stock market.

Its performance is presented for the informational and educational benefit of investors, as well as for enthusiasts of classic menswear and tailoring, and those who appreciate the deeper relationship between craft, culture, and long-term investing.

Investment Philosophy

The Sartorial Portfolio is guided by a simple premise: that the finest clothing businesses — like the garments they produce — are often built to endure.

The companies included tend to exhibit:

• Strong brand identity and heritage

• Consistent product quality and craftsmanship

• Measured growth and disciplined expansion

• Pricing power within their respective segments

• Long-term oriented management and ownership structures

In this sense, the portfolio reflects a belief that quality, when sustained over time, can translate into durable economic value.

Core Holdings

The initial core companies of the Sartorial Portfolio include:

• Brunello Cucinelli (BIT: BC) — The Apex of Quiet Luxury: the purest expression of craftsmanship, pricing power, and disciplined growth in modern luxury.

• Ermenegildo Zegna (NYSE: ZGN) — The Fully Integrated Italian Machine: a rare textile-to-retail platform with structural control over quality, margins, and brand narrative.

• Hugo Boss (XTRA: BOSS) — The Turnaround Tailor: a globally scaled suiting brand with credible upside from execution and brand elevation.

• LF (KOSE: A093050) — The Hidden Korean Compounder: an underfollowed, cash-generative play on affordable sartorial luxury in a rising market.

• Ralph Lauren (NYSE: RL) — The Enduring American Franchise: a generational brand with lifestyle depth, global recognition, and resilient economics.

• Salvatore Ferragamo (BIT: SFER) — The Sleeping Italian Asset: a heritage luxury house with latent brand equity and significant turnaround optionality.

• United Arrows (TSE: 7606) — The Tastemaker’s Retailer: a curator-led platform that monetizes Japanese refinement and evolving menswear sensibilities.

These companies were selected for their close connection to classic menswear, as well as their embodiment of craftsmanship, quiet luxury, and wearable elegance across different price points and geographies.

Together, they form a portfolio that spans Italian tailoring, Anglo-American style, Japanese refinement, and Korean contemporary craftsmanship, offering a broad yet coherent view of the global sartorial landscape.

Structure and Updates

The Sartorial Portfolio will be:

• Equally weighted at inception (December 31, 2024), with approximately US$5,000 allocated to each holding — reflecting both balance across ideas and the approximate average cost of a sartorialist’s suit

• Reviewed and updated periodically as conditions evolve

• Accompanied by commentary on both business performance and valuation

Portfolio updates will include:

• Performance tracking

• Notable developments within individual companies

• Additions or removals, where appropriate

• Reflections on broader industry trends

Purpose

The Sartorial Portfolio is hypothetical and does not represent actual investments or a managed fund. It is not intended as investment advice.

Rather, it serves as a structured lens through which readers can observe how a distinct class of businesses — those rooted in the traditions of fine menswear — behave over time as investments.

In an era of disposable fashion and quarterly thinking, classic menswear, craftsmanship, and enduring style remind us that true quality compounds slowly — in wardrobes and in businesses alike.

The portfolio exists to document, analyze, and better understand that proposition.

Portfolio Performance

From its inception on December 31, 2024, the Sartorial Portfolio increased in value by +24.5%, rising from an initial capital base of US$34,714 to US$43,208 as of April 27, 2026 — an absolute gain of US$8,494.

On a total return basis — incorporating unrealized gains, dividends, and currency movements — the portfolio delivered +27.3%, equivalent to US$9,478 over the same period. This translates to an annualized return of +20.3%.

Core Holdings’ Performance

As of April 27, 2026, the following summarizes each holding’s total return — including unrealized gains, dividends, and currency movements — along with its corresponding annualized return:

• LF (KOSE: A093050): +75.6% total return (+54.9% annualized)

• Ralph Lauren (NYSE: RL): +62.7% (+44.8% annualized)

• Ermenegildo Zegna (NYSE: ZGN): +46.5% (+33.8% annualized)

• Salvatore Ferragamo (BIT: SFER): +28.5% (+20.9% annualized)

• Hugo Boss (XTRA: BOSS): -4.1% (-3.2% annualized)

• Brunello Cucinelli (BIT: BC): -8.9% (-6.9% annualized)

• United Arrows (TSE: 7606): -8.9% (-6.9% annualized)

Expected Return and Valuation

As of April 27, 2026, the Sartorial Portfolio’s core holdings are projected to grow earnings at a compound rate of +14.7% per annum over the next three years, slower than their past average annual growth rate of +18.3% over the past three years.

Combining this earnings growth with a current dividend yield-on-cost of 1.6%, the portfolio is expected to generate an annualized return of approximately +16.3% over the same period.

From a valuation perspective, the portfolio appears meaningfully undervalued. Based on discounted future free cash flows, the portfolio’s intrinsic value is estimated at US$80.2 thousand, compared to a current market value of US$43.2 thousand — implying a 46.1% discount to intrinsic value.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and The Sartorial Portfolio, and publishes their investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Two decades ago, China’s story was written in smog-filled skies and coal-heavy growth. A decade ago, it was the world’s factory floor — efficient, vast, but often synonymous with low-cost, low-quality output. Today, the narrative has shifted again. China is now associated with electric vehicles, artificial intelligence, advanced semiconductors, and frontier technologies. This transformation did not happen by accident. It was engineered — methodically — through a policy framework that has quietly shaped one of the most consequential economic evolutions in modern history.

At the heart of that framework lies China’s system of five-year plans. Now in its 15th iteration, covering 2026 to 2030, this planning mechanism remains one of the most underappreciated tools in global investing. For a country that is the world’s second-largest economy and largest exporter, these plans are not mere guidelines — they are blueprints. They cascade down from the central government to ministries, provinces, and municipalities, each setting targets aligned with national priorities. Officials are evaluated — and promoted — based on how effectively they execute them. Capital flows, subsidies, and regulatory support follow accordingly.

And historically, this system has worked.

The 11th through 13th five-year plans prioritized environmental repair and renewable energy, responding to years of unchecked industrial pollution. The results are visible today: cleaner cities and global leadership in solar and battery technologies. Beginning with the 13th plan and reinforced by the “Made in China 2025” strategy, the focus shifted toward innovation — reducing dependence on legacy industries and upgrading manufacturing capabilities.

This policy push helped give rise to a cohort of globally competitive firms. Companies like Baidu in artificial intelligence, Alibaba and Tencent in digital ecosystems, DJI in drones, BYD in electric vehicles, and SMIC in semiconductors did not emerge in isolation. They were, in many ways, aligned with — and accelerated by — national priorities.

The new 15th five-year plan signals another pivot. This time, the emphasis is not on discovery, but deployment.

After years of heavy investment in research and development, China is now shifting toward what can be described as “industrialization of innovation.” The priority is modernization — taking technologies that have already been developed and scaling them across the economy. This includes nationwide 5G deployment, commercialization of autonomous driving, mass production of robotics, and broader integration of artificial intelligence into both industrial and consumer applications.

For investors, this shift matters. It suggests that the next phase of value creation will not necessarily come from breakthrough inventions, but from the companies that can implement and scale those innovations efficiently. Infrastructure providers, manufacturing enablers, and application-layer companies may benefit as much as, if not more than, pure R&D players.

Alongside modernization, self-reliance has moved to the forefront of China’s strategic thinking. Geopolitical tensions — ranging from tariffs to export restrictions on advanced chips — have exposed vulnerabilities in global supply chains. China’s response is clear: build domestic capability across the entire technology stack.

This is where artificial intelligence becomes central. The plan positions AI not as a standalone sector, but as a foundational layer across industries — from manufacturing and logistics to healthcare and finance. Domestic firms are expected to lead this transformation, often supported by policy incentives and funding.

This creates a two-speed dynamic. On one hand, Chinese companies operating in AI, semiconductors, and advanced manufacturing may enjoy strong structural tailwinds. On the other, foreign firms in these same sectors could face increasing barriers as China prioritizes local champions.

Perhaps the most intriguing addition to the 15th plan is the concept of “new quality productive forces.” While the phrase may sound abstract, its implications are concrete. It signals China’s intent to lead in what it defines as “emerging” and “future” industries — fields that could shape the next decade of global economic growth.

These include integrated circuits, embodied AI, bio-manufacturing, 6G communications, green hydrogen, brain-computer interfaces, and advanced medical technologies. The government has even embedded measurable targets, such as increasing high-value invention patents from 16 per 10,000 people in 2025 to over 22 by 2030.

For investors, this is a clear roadmap. These sectors are not just areas of interest — they are areas of intent. Capital, talent, and policy support are likely to converge here, increasing the probability that today’s lesser-known firms could become tomorrow’s market leaders.

At the same time, China is not turning inward entirely. The plan also outlines a selective reopening to foreign investment. Certain sectors — telecommunications services, healthcare, biotechnology, and education — are being gradually liberalized. Restrictions on foreign ownership are being eased in targeted areas, and the so-called “negative list” for investment is shrinking.

This reflects a pragmatic balance. China recognizes the need for foreign capital, expertise, and competition in specific industries, particularly where domestic capabilities remain underdeveloped. For global investors and multinational corporations, this creates a narrow but meaningful window of opportunity. Those that gain entry into these sectors may benefit from access to one of the world’s largest and most dynamic markets — though likely under carefully managed conditions.

Stepping back, the broader insight is straightforward but powerful: in China, policy direction is often a leading indicator of market outcomes.

The country’s track record suggests that when the government prioritizes an industry, it significantly increases the odds of that sector producing global leaders. But this also means that opportunity is becoming more concentrated. Rather than broad-based growth across all sectors, future returns are likely to be driven by a narrower set of industries aligned with national strategy.

For investors, the implication is clear. Understanding China’s five-year plans is not about macro curiosity — it is about identifying where capital, incentives, and execution will intersect next.

China’s next winners are unlikely to be random. They are being signaled, supported, and, to a large extent, selected in advance.

Emerging Contenders: China’s Next Generation of Tech Leaders

Beyond today’s established giants, a new wave of Chinese companies is emerging at the intersection of policy support and technological disruption. These five out of more than 150 firms operate in sectors prioritized by the latest five-year plan — ranging from AI and semiconductors to robotics and biotech — and could represent the next phase of China’s growth story.

• Contemporary Amperex Technology (SZSE: 300750)

• Hygon Information Technology (SHSE: 688041)

• Cambricon Technologies (SHSE: 688256)

• NAURA Technology Group (SZSE: 002371)

• Moore Threads Technology (SHSE: 688795)

This article was sourced and inspired by insights from Simply Wall Street equity analyst Stella Ong.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to March 31, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +46.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Every so often, an investment story comes along that makes you pause — not because it is complex or obscure, but because it was hiding in plain sight the whole time. This week’s unlikely standout is Karex, a Malaysia-listed company that quite literally makes a product the world cannot afford to run out of — especially now.

According to recent reports from Reuters and The Straits Times, Karex is raising prices sharply as the ongoing US-Iran conflict squeezes global supply chains. That may sound like just another inflation story — until you realize what Karex actually does. It is the world’s largest condom manufacturer, producing more than five billion units annually. Its client list includes household names like Durex and Trojan, as well as public health heavyweights such as Britain’s National Health Service and programs backed by the United Nations.

In other words, Karex is not just in the business of protection — it is in the business of global necessity. And necessity, as investors know, is the ultimate pricing power.

Demand for Karex’s products has reportedly surged by about 30% in 2026. Meanwhile, shipping disruptions — echoing the same logistical headaches seen in oil markets — have stretched delivery times from roughly one month to nearly two. The result? Millions of units are effectively stuck at sea, creating shortages in regions that need them most. As CEO Goh Miah Kiat bluntly put it, there are “a lot more condoms actually sitting on vessels” instead of where they are urgently required. It’s a bottleneck situation — quite literally.

Now, here’s where things get interesting from an investor’s perspective. In most industries, raising prices during supply disruptions risks killing demand. But Karex operates in a category where demand is, shall we say, highly inelastic. When the alternative is significantly more costly — financially and socially — customers tend to absorb price increases without much resistance. That’s not just a business model; that’s a moat with… durability.

The numbers support the narrative. Karex is forecast to grow revenue at about 10.6% annually, from RM512 million (US$130 million) in 2025 to RM693 million (US$175 million) by 2029. But the real kicker is earnings. The company is expected to swing from a modest loss of RM1.51 million (US$382,000) in 2025 to a profit of RM292 million (US$74 million) by 2029 — an astonishing 79.7% annual growth rate. For context, that’s far above the Malaysian personal products industry’s expected earnings growth of 16.8%. Put differently, Karex isn’t just turning things around — it’s staging a full-blown rebound.

If those earnings materialize, and the market applies the industry’s average price-to-earnings multiple of 19.73 times, Karex could be worth approximately RM5.76 billion (US$1.46 billion) by 2029. That’s a dramatic jump from its current valuation of roughly RM690 million (US$175 million). Not bad for a company many investors, including me, didn’t even know existed — proof that sometimes the best opportunities are the ones we’ve been, well, overlooking.

There’s also a broader lesson here. Great businesses are often built on mundane, even unglamorous products — things people don’t talk about at dinner parties but cannot live without. Karex fits squarely into that category. It doesn’t rely on cutting-edge technology or speculative trends. Instead, it benefits from global population growth, public health initiatives, and a product with consistent, recurring demand. You might say its business model is… well-covered from multiple angles.

Of course, no investment is without risks. Supply chain disruptions that boost prices today could normalize tomorrow. Currency fluctuations, raw material costs, and regulatory dynamics in healthcare markets all remain factors to watch. But the core thesis — that Karex can raise prices in a tight market without killing demand — is a powerful one. In investing, pricing power is often the difference between a good business and a great one.

So yes, the world may be grappling with geopolitical tensions and shipping bottlenecks. But amid the chaos, Karex has found itself in an enviable position: selling more, charging more, and potentially earning much more. It turns out that in times of uncertainty, some businesses don’t just survive — they’re built to protect their profits.

And if that’s not a well-covered investment thesis, I don’t know what is.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to March 31, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +46.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

The answer, so far, has been compelling. A hypothetical US$1 million investment made on December 31, 2024, equally allocated across the seven ETFs, would have grown to approximately US$1.23 million by April 17, 2026. That is a total return of +25.7%, or US$256,505, including dividends, translating to an annualized return of +19.5%.

This performance has outpaced the broad U.S. market, as represented by the Vanguard S&P 500 Index Fund at +17.0% annualized, though it still trails the stronger rebound seen in emerging markets broadly through the Vanguard Emerging Markets Index Fund at +27.0%. Even so, ASEAN’s showing is notable: it has delivered competitive returns without the extreme concentration risks often found in larger emerging markets.

Vietnam: +69.7% (+50.5% annualized)

At the center of this performance is Vietnam, the portfolio’s undisputed leader. The Global X MSCI Vietnam ETF surged +69.7% over the period, or an annualized +50.5%, driven by strong foreign inflows and a wave of optimism around the country’s long-term manufacturing and export story. Yet beneath the enthusiasm lies a more measured reality. While investors are pricing in strong growth, with the market trading at 15.2x earnings — slightly above its historical average — analysts expect earnings to grow at around +15% annually over the next three years, below its recent +20% pace. In short, Vietnam remains a growth story, but one where expectations are beginning to run ahead of fundamentals.

Singapore: +39.8% (+30.0% annualized)

Singapore, often seen as the region’s financial anchor, has also delivered strong returns. The iShares MSCI Singapore ETF gained +39.8%, or +30.0% annualized, reflecting renewed confidence in its stable, dividend-heavy market. Investor sentiment is clearly optimistic, with valuations rising above historical averages. However, earnings growth expectations remain modest at +5.1% annually. This suggests that Singapore’s rally is less about explosive growth and more about its role as a defensive, income-generating market in uncertain times.

ASEAN’s Top 40 Companies: +27.9% (+21.0% annualized)

The broader regional story is captured by the Global X FTSE Southeast Asia ETF, which tracks ASEAN’s 40 largest companies and returned +27.9% (+21.0% annualized). This performance reinforces a key point: while individual markets may diverge, the region as a whole benefits from structural tailwinds — rising consumption, supply chain diversification, and favorable demographics — that continue to attract long-term capital.

Malaysia: +22.7% (+17.4% annualized)

Thailand: +22.4% (+17.1% annualized)

Elsewhere in the portfolio, the story becomes more nuanced — and arguably more interesting. Malaysia and Thailand, both currently out of favor with investors, have delivered solid but unspectacular returns. The iShares MSCI Malaysia ETF rose +22.7%, while the iShares MSCI Thailand ETF gained +22.4%. In both cases, valuations are below historical averages, reflecting pessimistic sentiment. Yet earnings forecasts tell a different story: analysts expect growth of +12% annually for Malaysia and +11% for Thailand — significantly higher than their recent historical growth rates. This divergence between sentiment and fundamentals may signal opportunity for patient investors willing to look beyond current narratives.

The Philippines: +4.0% (+3.1% annualized)

The Philippines presents a more challenging picture. The iShares MSCI Philippines ETF has returned just +4.0% (+3.1% annualized), weighed down by weaker investor sentiment and concerns over slowing earnings growth. Valuations, however, have compressed significantly, with the market trading at just 9x earnings — well below its historical and regional averages. While analysts expect earnings growth of +9.5% annually, this is a step down from its previous trajectory, suggesting that the market is undergoing a period of recalibration rather than structural decline.

Indonesia: -6.9% (-5.5% annualized)

Indonesia, Southeast Asia’s largest economy, has been the portfolio’s laggard. The iShares MSCI Indonesia ETF declined -6.9% (-5.5% annualized), reflecting a market caught between steady fundamentals and a lack of strong investor conviction. Valuations remain broadly in line with historical averages, and earnings are expected to grow at +6.4% annually — an improvement over its near-flat recent history. In many ways, Indonesia represents a “wait-and-see” market: stable, but lacking a clear catalyst.

What This Means for Investors

Taken together, ASEAN, Inc. reveals a region that is far from uniform. It is a mosaic of markets at different stages of economic development, each shaped by its own cycles of optimism and pessimism. Yet this diversity is precisely what gives the portfolio its strength. Strong performers like Vietnam and Singapore offset weaker markets like Indonesia and the Philippines, while undervalued markets such as Malaysia and Thailand provide potential upside.

The broader lesson is clear. Southeast Asia is no longer just a peripheral allocation — it is increasingly a core part of the global investment conversation. Its ability to deliver competitive returns across varying market conditions suggests that investors who treat ASEAN as a unified, long-term story may be better positioned than those attempting to time individual markets.

In a world where headlines are dominated by superpower rivalries and macro uncertainty, ASEAN, Inc. offers a quieter narrative — one of steady growth, evolving opportunity, and a region coming into its own.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to March 31, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +46.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

The premise is simple. ASEAN, Inc. equally allocates capital across ETFs representing Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and a regional fund tracking ASEAN’s top 40 listed companies. The objective is equally straightforward: to track how the region performs collectively and individually over time, particularly in the context of a volatile global economy.

Had an investor deployed US$1 million into this portfolio on December 31, 2024 — allocating US$142,857 into each ETF — the results would be striking. As of April 10, 2026, ASEAN, Inc. generated a total return of +22.8%, equivalent to US$227,818 in gains, including dividends. On an annualized basis, that translates to +17.8%, a figure that not only demonstrates resilience but also relative outperformance. For context, the Vanguard S&P 500 Index Fund delivered +12.8% annualized over the same period, while the Vanguard Emerging Markets Index Fund posted a stronger +23.8%.

This places ASEAN, Inc. in a compelling middle ground: outperforming developed markets while slightly trailing the broader emerging markets universe. But beneath that aggregate performance lies a more nuanced — and more interesting — story.

Vietnam: +58.3% (+43.2% annualized)

At the top of the leaderboard is the Global X MSCI Vietnam ETF, which surged +58.3% (+43.3% annualized). Despite this strong performance, investor sentiment remains surprisingly neutral. Valuations tell the story: the market trades at a price-to-earnings ratio of 14.5x, nearly identical to its three-year average of 14.9x. Analysts forecast earnings growth of +15% annually over the next three years — solid, but below the +20% pace seen in the past. In other words, Vietnam’s rally has been driven more by fundamentals catching up than by speculative exuberance.

A major structural catalyst further reinforces Vietnam’s investment case. On April 8, 2026, FTSE Russell officially upgraded Vietnam to Secondary Emerging Market status following its March 2026 interim review, placing it alongside peers such as China, Taiwan, India, and Brazil. The decision reflects sustained regulatory reforms led by the Ministry of Finance, the State Securities Commission, and the Vietnam Securities Depository and Clearing Corporation to meet global index standards. The reclassification, effective September 21, 2026, will trigger a phased four-tranche inclusion by index funds — 10% initially, followed by 20%, 35%, and 35% allocations through September 2027 — potentially driving foreign inflows of US$6–8 billion, and up to US$10 billion in a more optimistic scenario, with active investors expected to account for the majority of capital.

Singapore: +37.9% (+29.1% annualized)

Close behind is the iShares MSCI Singapore ETF, returning +37.9% (+29.1% annualized). Unlike Vietnam, investor sentiment here leans optimistic. Earnings are expected to grow at +4.9% annually, outpacing the recent historical rate of +3.8%, and valuations have expanded accordingly, with the market trading at 15.8x earnings versus a three-year average of 14.5x. Singapore’s strength reflects its role as a regional financial hub and a beneficiary of capital flows seeking stability within emerging markets.

ASEAN’s Top 40 Companies: +26.5% (+20.3% annualized)

The Global X FTSE Southeast Asia ETF, which captures the region’s largest companies, delivered a robust +26.5% return (+20.3% annualized). This suggests that large-cap ASEAN corporates — often more internationally exposed and operationally diversified — have been key drivers of the region’s overall resilience.

Thailand: +22.1% (+17.1% annualized)

Meanwhile, the iShares MSCI Thailand ETF posted a +22.1% gain (+17.1% annualized). Investor sentiment remains neutral, but with an interesting twist: forward earnings growth is projected at +11% annually, significantly higher than the +3.6% achieved over the past three years. Yet valuations remain anchored near historical averages, indicating a market that has yet to fully price in this improvement.

Malaysia: +20.6% (+16.1% annualized)

The iShares MSCI Malaysia ETF presents a more contrarian setup. Despite returning +20.6% (+16.1% annualized), investor sentiment is pessimistic. The market trades at 16.9x earnings, below its three-year average of 18.1x, even as earnings are expected to grow at +12% annually — far exceeding the sluggish +1.0% growth of the recent past. This disconnect between sentiment and fundamentals may offer an opportunity for patient investors.

The Philippines: +3.9% (+3.1% annualized)

Further down the spectrum is the iShares MSCI Philippines ETF, which delivered a modest +3.9% return (+3.1% annualized). Here, pessimism appears more justified. Earnings growth is expected to slow to +9.1% annually, down from +16% historically, and valuations remain compressed at 9.1x earnings versus a three-year average of 11.7x. The market is cheap, but not without reason.

Indonesia: -9.8% (-7.9% annualized)

Finally, the laggard: the iShares MSCI Indonesia ETF, which declined -9.8% (-7.9% annualized). Yet even here, the narrative is not entirely negative. Investor sentiment is neutral, and earnings are projected to grow at +5.9% annually, a marked improvement from the near-stagnant +0.4% growth of the past three years. Valuations have also softened slightly, trading below historical averages. Indonesia may be less a story of decline and more one of delayed recovery.

What This Means for Investors

Taken together, ASEAN, Inc. illustrates a key investment insight: regional diversification matters — not just across countries, but across narratives. High-growth markets like Vietnam can coexist with undervalued laggards like Malaysia and Indonesia, while steady performers like Singapore provide ballast.

More importantly, the portfolio’s overall outperformance — despite the severe disruptions caused by the US-Iran war — underscores Southeast Asia’s structural strengths. These include favorable demographics, ongoing urbanization, supply chain diversification away from China, and rising intra-regional trade. In an increasingly fragmented global economy, ASEAN’s relative neutrality and economic pragmatism may prove to be enduring advantages.

ASEAN, Inc. is not just a portfolio. It is a lens through which investors can observe the evolving dynamics of one of the world’s most important growth regions. And if the past 16 months are any indication, it is a region that deserves far more than a passing glance.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to March 31, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +46.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

When Art Basel Hong Kong closed on March 29, 2026, it offered more than a snapshot of a successful fair — it delivered a remarkably clear signal about the state, and trajectory, of the global art market. That clarity is all the more striking given the backdrop: escalating geopolitical and economic tensions, including tariff pressures associated with Donald Trump and the shadow of a US-Iran conflict. Despite these headwinds, the fair recorded strong attendance, active buying, and broad international participation — an outcome that points not to fragility, but to resilience and underlying growth. In a sector where opacity is the norm and reliable data is scarce, the convergence of visitor numbers, sales activity, collector behavior, and the performance of its organizing platform offers an unusually legible proxy for reading the deeper currents shaping the art market today.

With 91,500 visitors and “strong sales across all market segments,” the fair confirmed a market that is neither overheated nor stagnant, but recalibrating. Yet to understand why this matters, one must look beyond the headline numbers and toward the structure that produces them. Art Basel Hong Kong is not merely an event — it is a marketplace with built-in mechanisms for price discovery, liquidity, and global capital allocation. As such, its performance functions as a real-time barometer for the broader art economy.

What distinguished this year’s edition was not the volume of works on display, but the composition of buyers. Collectors from across Asia-Pacific — mainland China, Hong Kong, Korea, Taiwan, Japan, and Southeast Asia — were actively acquiring alongside peers from Europe and the United States. The result is a widening geographic base of demand, one that reduces dependence on any single region and strengthens the market’s resilience. Even more telling was the influx of younger buyers and first-time collectors. These entrants are not simply adding incremental demand; they are extending the market’s time horizon, introducing new tastes, and reinforcing its long-term durability.

The pattern of transactions reinforced this shift. Swiss gallery Hauser & Wirth placed works by Louise Bourgeois, George Condo, Rashid Johnson, Lee Bul, Cindy Sherman, Avery Singer, Qiu Xiaofei, and Flora Yukhnovich within the opening day to major collections across continents. London gallery White Cube reported roughly GBD 5 million (~US$6.7 million) in sales, including works by Antony Gormley, Tracey Emin, Etel Adnan, and Mona Hatoum. These transactions were not speculative bursts of activity; they reflected deliberate, cross-border institutional buying — arguably the most reliable form of demand in the art market.

Equally important was the strength of demand for Asia-Pacific artists, across both established and emerging tiers. This signals a market no longer content to recycle established Western blue-chip names. Instead, it is actively constructing a regional canon, supported by a collector base willing to commit capital to artists closer to home. This dual dynamic — global integration alongside regional self-definition — is characteristic of a market entering maturity.

If the fair itself provides a qualitative lens, the performance of Swiss Exchange-listed MCH Group offers a quantitative one. As the operator of Art Basel, MCH sits at the center of the art market’s most important commercial infrastructure. Its financial trajectory over the past five years mirrors, in many respects, the arc of the market itself.

In 2020, amid pandemic lockdowns, MCH reported a loss of CHF 71.7 million (~US$83.7 million) — a reflection of a global art market abruptly deprived of its primary transactional venues. By 2025, the company had returned to profitability, posting CHF 18.6 million (~US$21.7 million) in earnings. This recovery, translating to an average annual earnings growth rate of 72.8%, significantly outpaces the broader global media industry’s 9.4% growth. Revenues followed a similarly robust path, expanding at an average rate of 18.8% annually, from CHF 163.1 million (~US$190.4 million) in 2020 to CHF 388.8 million (~US$454 million) in 2025.

These figures are not merely corporate milestones; they are indicators of restored — and expanding — market activity. Art fairs like those under the Art Basel umbrella function as high-margin, high-impact nodes within the art ecosystem. When they contract, the market tightens; when they expand, capital flows accelerate. MCH’s rebound, therefore, is not just a company story — it is a market signal.

Projecting forward sharpens this perspective. If MCH sustains its 18.8% revenue growth, it could reach approximately CHF 921.1 million (~US$1.08 billion) by 2031. Maintaining a net profit margin of 4.8% would imply earnings of roughly CHF 44 million (~US$51.4 million). Such growth would not be achievable without a corresponding expansion in the underlying art market — more transactions, higher values, broader participation. In this sense, MCH’s financial trajectory serves as a forward-looking proxy for the art market’s own growth potential.

Leadership will play a defining role in how this potential is realized. At the helm of Art Basel is Noah Horowitz, who has served as Chief Executive Officer since November 2022, following earlier roles as Director of the Americas and a career spanning senior positions at Sotheby’s and The Armory Show. A scholar as well as an operator, Horowitz holds a PhD from the Courtauld Institute of Art and authored Art of the Deal: Contemporary Art in a Global Financial Market, reflecting a rare combination of academic depth and market fluency. At the group level, MCH Group is anchored by a concentrated ownership structure: Lupa Systems — controlled by James Murdoch — holds 41.8%, while Switzerland’s Kanton Basel-Stadt retains 37.7%. This alignment of significant private capital with public-sector stewardship, reinforced by an experienced board and management team, creates a governance framework that emphasizes long-term value creation. Crucially, Murdoch’s substantial stake ensures clear skin in the game, aligning strategic execution with shareholder outcomes.

At the structural level, Hong Kong’s position reinforces the reliability of this proxy. By securing a five-year agreement with Art Basel to remain its exclusive Asian platform, the city has effectively locked in its role as the region’s primary marketplace. Competitors such as Singapore and Seoul continue to invest aggressively, but neither has yet matched Hong Kong’s ecosystem density, infrastructure depth, or network effects. The fair’s continued success strengthens these advantages, creating a reinforcing cycle between platform, city, and market.

All of this converges on a broader conclusion. The Asian art market is not reverting to its pre-pandemic form, nor is it simply reviving the exuberance of the 2010s. It is evolving into something more balanced and structurally sound: a market defined by greater transparency, more selective buying, wider segment diversification, and an increasingly international collector base. The rise of younger buyers, alongside a deepening commitment to regional artists, points to a system that is not merely recovering, but actively renewing itself. What makes this transformation more compelling is the context in which it is occurring. Even amid global economic friction linked to Donald Trump’s tariff posture and heightened geopolitical uncertainty surrounding the US-Iran conflict, Art Basel Hong Kong delivered strong results — evidence of a market that is absorbing shocks while continuing to expand.

The Asian art market has not yet returned to full speed, but it has regained its sense of direction. And in the interplay between Art Basel Hong Kong and MCH Group, one finds a rare convergence of cultural momentum and financial performance. Together, they form a powerful and visible proxy — through which the otherwise opaque art market can be read with unusual clarity — not as a fragile recovery, but as a system demonstrating resilience, depth, and sustained growth.

The next edition of Art Basel Hong Kong will take place from March 25 to 27, 2027.

Data for this article was sourced from Artprice, Art Basel, MCH Group, and S&P Global Market Intelligence.

This article appears in Art+ Magazine.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to March 31, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +46.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

The portfolio invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices.

The portfolio is expected to generate superior returns over time with minimum business risk, regardless of the global market environment.

Earnings growth and returns on capital are the fundamental drivers of a business’s intrinsic, or true value. Businesses that focus on increasing their earnings and maintaining high returns on capital over the long term will ultimately reward investors with higher share prices.

The portfolio’s businesses are forecast to significantly grow their earnings and maintain their high returns on capital by at least 20% per year over the next three years, faster than their respective countries’ inflation rates, faster than their respective industries, and faster than their respective markets. As a result, their returns to investors, including dividends, are expected to be at least 20% per year as well.

Performance

From its inception on December 16, 2023, to March 31, 2026, the SeA Focus Portfolio delivered an annualized return (including unrealized, realized, dividend, and currency returns) of +46.5%.

The portfolio’s annualized return has outperformed the annualized returns of all Southeast Asian country index funds since inception:

SeA Focus Portfolio: +46.5%

vs.

• iShares MSCI Singapore ETF: +21.1%

• Global X MSCI Vietnam ETF: +17.1%

• iShares MSCI Malaysia ETF: +13.3%

• Global X FTSE Southeast Asia ETF (ASEAN’s Top 40): +12.5%

• iShares MSCI Thailand ETF: +4.7%

• iShares MSCI Philippines ETF: -1.9%

• iShares MSCI Indonesia ETF: -13.2%

Over the past year, from March 31, 2025, to March 31, 2026, the portfolio’s price return of +41.5% has also outperformed the US S&P 500’s price return of +16.3%.

Current Holdings

As of March 31, 2026, the following are the portfolio’s current holdings and their total and annualized returns (including unrealized, dividend, and currency returns):

• Saigon Thuong Tin Commercial Bank (Sacombank) (STB)

  • Provides banking products and services to individual and corporate clients in Vietnam.

  • Total Return: +70.2%

  • Annualized Return: +45.8%

• Wismilak Inti Makmur (WIIM)

  • Manufactures and sells cigarettes in Indonesia and internationally.

  • Total Return: +50.0%

  • Annualized Return: +162.1%

• Apex Mining (APX)

  • Engages in exploration and production of metals and minerals in the Philippines.

  • Total Return: +30.9%

  • Annualized Return: +77.9%

• Binastra Corporation Berhad (BNASTRA)

  • An investment holding company, engages in general contracting and property development, building, and civil engineering works in turnkey projects in Malaysia.

  • Total Return: +21.1%

  • Annualized Return: +26.4%

• Ancara Logistics Indonesia (ALII)

  • Engages in the sea transportation, transshipment, and intermediate stockpile services in Indonesia.

  • Total Return: +9.6%

  • Annualized Return: +26.2%

• TIMAH (TINS)

  • Engages in tin mining and smelting operations in Indonesia and internationally.

  • Total Return: +7.9%

  • Annualized Return: +24.1%

• Viglacera (VGC)

  • Manufactures and sells building materials in Vietnam.

  • Total Return: +5.6%

  • Annualized Return: +13.5%

• Maguro Group (MAGURO)

  • Owns and operates restaurants in Thailand.

  • Total Return: +1.6%

• Southern Score Builders Berhad (SSB8)

  • An investment holding company, provides construction management services for building and infrastructure works in Malaysia.

  • Total Return: +1.4%

• Central Omega Resources (DKFT)

  • Engages in the mineral mining business in Indonesia.

  • Total Return: -6.4%

  • Annualized Return: -13.7%

• Ramssol Group Berhad (RAMSSOL)

  • An investment holding company, provides human resource solutions in Malaysia, Singapore, Thailand, Indonesia, the Netherlands, Hong Kong, and Japan.

  • Total Return: -7.1%

  • Annualized Return: -31.9%

• Daya Intiguna Yasa (MDIY)

  • Operates as a household appliance, furniture, stationery, electronic, and sport equipment retailer in Indonesia and internationally.

  • Total Return: -20.1%

Expected Returns

As of March 31, 2026, the portfolio’s current holdings are forecast to grow their earnings by +30.6% per year over the next three years and maintain their high returns on capital by at least 20% per year, faster than their respective countries’ inflation rates, faster than their respective industries, and faster than their respective markets. As a result, the portfolio’s real return to investors, including a dividend yield-on-cost of 2.9%, is expected to be at least +33.5% per year as well.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

In previous updates, the purpose of this series has been clear — to track how this diversified Southeast Asian portfolio performs over time, and to interpret what the market is saying about each country amid an evolving global economic landscape.

If we had invested US$1 million — equally allocating US$142,857 across the seven ETFs — on December 31, 2024, that portfolio would have grown to US$1,130,808 by March 20, 2026.

This represents a total return of +16.1%, including dividends, or an annualized return of +13.1%, despite the negative effects of the ongoing Iran war.

That performance quietly outpaced the +8.7% annualized return of the Vanguard S&P 500 Index Fund, though it lagged the stronger +17% annualized return of the Vanguard Emerging Markets Index Fund since December 31, 2024.

In other words, ASEAN, Inc. is neither lagging nor leading globally — it is steadily compounding in the middle, with pockets of both strength and skepticism.

Vietnam: +43.3%

The standout performer has been the Global X MSCI Vietnam ETF, delivering a remarkable +43.3% return.

Yet, paradoxically, investor sentiment toward Vietnam has turned cautious.

Earnings are expected to grow at 14% annually over the next three years, a noticeable slowdown from the 20% annual growth achieved in the past three years.

This tempered outlook is reflected in valuations, with the market trading at 13.7x earnings — below its recent average of 14.9x.

The implication is subtle but important: strong past returns are now not being translated into investor exuberance.

Instead, expectations have been recalibrated, potentially leaving room for upside if growth proves more resilient than feared.

Singapore: +30.4%

Singapore, as represented by the iShares MSCI Singapore ETF, tells a different story.

With a +30.4% return, the market has also performed well, but here investor sentiment is more optimistic.

Earnings are projected to grow at 4.7% annually, slightly above the historical 3.8% growth rate.

This modest acceleration has been enough to justify a higher valuation multiple of 15.6x compared to its 3-year average of 14.4x.

Singapore’s role as a financial and economic hub appears to be reinforcing investor confidence, even if absolute growth remains relatively modest.

Malaysia: +21.8%

Malaysia presents a more nuanced case.

The iShares MSCI Malaysia ETF has returned +21.8%, and while sentiment remains cautious, the underlying earnings outlook has improved significantly.

Forecast earnings growth of 12% annually is a sharp acceleration from just 1.0% in the past three years.

Despite this, the market trades at a discount to its historical valuation, at 16.9x versus a 3-year average of 18.1x.

This divergence between improving fundamentals and subdued sentiment suggests a potential mispricing — one that long-term investors may find compelling.

ASEAN’s Top 40: +21.5%

The Global X FTSE Southeast Asia ETF, which tracks the region’s top 40 companies, has delivered a solid +21.5% return, reinforcing the idea that regional champions — often large, diversified, and cross-border in nature — continue to benefit from ASEAN’s structural growth story.

These companies provide a useful lens into the region’s broader economic trajectory, capturing both domestic consumption and intra-regional trade dynamics.

Thailand: +11.2%

Thailand’s performance, through the iShares MSCI Thailand ETF, has been more muted at +11.2%.

Investor sentiment remains pessimistic, despite a meaningful improvement in earnings expectations.

Forecast growth of 9.6% annually compares favorably to the 3.8% achieved over the past three years, yet the market trades at a discount, with a price-to-earnings ratio of 16.3x versus a 3-year average of 17.7x.

This suggests that investors remain unconvinced about the durability of Thailand’s recovery, possibly due to political or structural concerns.

The Philippines: -1.1%

The Philippines, represented by the iShares MSCI Philippines ETF, has slightly declined by -1.1%, making it one of the weaker performers in the portfolio.

Investor sentiment remains cautious, with earnings expected to grow at 9.4% annually — below the 11% historical rate.

However, the market’s valuation tells a more intriguing story.

At just 9.2x earnings, significantly below its 3-year average of 11.8x, Philippine equities appear deeply discounted.

This could indicate either heightened risk perceptions or a potential opportunity for re-rating if growth stabilizes.

Indonesia: -14.6%

Indonesia stands out as the portfolio’s laggard, with the iShares MSCI Indonesia ETF declining by -14.6%.

Yet here, too, the narrative is not entirely negative.

Earnings are expected to grow at 14% annually over the next three years, a dramatic improvement from the near-flat 0.4% growth in the past three years.

Despite this, valuations remain subdued at 19.4x versus a historical average of 20.4x.

The disconnect between improving earnings prospects and weak price performance suggests that macroeconomic or currency concerns may be weighing on investor sentiment more than fundamentals alone.

What This Means for Investors

What emerges from ASEAN, Inc. is a pattern that experienced investors will recognize: markets often move ahead of, or lag behind, fundamentals.

In several ASEAN countries, earnings growth is expected to improve meaningfully, yet valuations remain compressed due to cautious sentiment.

This creates a landscape rich with potential opportunities, particularly for investors willing to take a long-term view.

The broader takeaway is that Southeast Asia continues to offer a compelling, if uneven, investment story.

The region benefits from favorable demographics, rising middle-class consumption, and increasing integration into global supply chains.

Yet these structural advantages are not always reflected in short-term market sentiment, which remains influenced by global interest rates, currency movements, and geopolitical uncertainty.

ASEAN, Inc., therefore, is not just a portfolio — it is a real-time narrative of how a diverse and dynamic region is being priced by global markets.

As of today, that narrative is one of cautious optimism at best, and selective pessimism at worst.

For investors, that may be precisely where the opportunity lies.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to February 27, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +67.7%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

In Southeast Asia’s fast-growing cities, a familiar green logo has quietly become part of everyday life. From commuters hailing rides in Manila to office workers ordering lunch in Jakarta and travelers navigating unfamiliar streets in Bangkok or Ho Chi Minh City, millions rely on a single platform to move, eat, pay, and increasingly, manage their finances. That platform is Grab Holdings (Nasdaq: GRAB). What began as a ride-hailing service has evolved into Southeast Asia’s leading “superapp” — a digital ecosystem connecting consumers, drivers, merchants, and financial services across the region. As Southeast Asia continues its rapid economic rise, Grab has positioned itself at the center of daily commerce, making the company an increasingly compelling proxy for the region’s long-term growth story.

Headquartered in Singapore and founded in 2012, Grab operates across eight Southeast Asian markets: Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The company operates through four primary segments: Deliveries, Mobility, Financial Services, and Others. Together they form the Grab ecosystem — a single platform that allows driver-partners, merchant-partners, and consumers to interact through integrated apps. A user may take a ride to work, order dinner through the same app, pay digitally using Grab’s wallet, and eventually obtain financing through Grab’s financial services platform. This interconnected system creates powerful network effects: the more participants join the ecosystem, the more valuable it becomes to everyone involved.

For many residents and visitors in Southeast Asia, Grab has become nearly indispensable. In rapidly growing cities where public transportation can be limited and traffic congestion is common, Grab’s mobility services provide a reliable way to move around. Its delivery platform connects thousands of restaurants and merchants with millions of consumers, creating a digital marketplace that supports both convenience and small business growth. In this way, Grab is not merely a technology company — it is increasingly a form of digital infrastructure that supports everyday economic activity across the region.

The company’s financial trajectory reflects this growing role. Over the past five years, Grab has transformed from a high-growth but heavily loss-making startup into a profitable technology platform. In 2019, Grab reported a net loss of approximately US$3.75 billion. By 2025, the company achieved profitability, posting earnings of US$268 million. This turnaround represents average earnings growth of roughly 56% per year over the period — a remarkable shift that reflects both operational discipline and the benefits of scale as the platform matured.

Revenue growth has been equally impressive. Grab’s revenue expanded from about -US$845 million in 2019 to US$3.37 billion in 2025, representing an average annual growth rate of approximately 34.4%. Looking ahead, growth is expected to remain strong. Professional analyst forecasts suggest that Grab could grow earnings by about 25.5% annually over the next three years, reaching roughly US$854 million by 2028. Revenue is projected to grow by about 15.2% per year, reaching approximately US$5.85 billion by that time. These projections suggest that Grab is entering a new phase of its corporate evolution — one where scale, profitability, and ecosystem expansion reinforce one another.

Yet one of the most important drivers of Grab’s long-term potential remains relatively underappreciated: its financial services division, known as Grab Financial Group. While mobility and food delivery dominate public perception, financial services may ultimately prove even more transformative. As of 2025, Grab Financial Group accounted for approximately 10.3% of total company revenue, generating US$347 million. Just three years earlier, in 2022, the division generated only US$64 million, representing about 4.5% of total revenue. This implies an extraordinary average annual growth rate of roughly 75.7% over the past three years.

The opportunity is immense because Southeast Asia remains one of the most underbanked regions in the world. According to Grab Financial Group, more than six in ten Southeast Asians are either unbanked or underbanked, meaning they lack access to basic financial services such as bank accounts, loans, or insurance. Grab aims to close this gap by offering simple, transparent, and accessible financial products through the same app that millions of people already use daily.

One particularly notable initiative is GrabFinance, a financial empowerment program designed specifically for the drivers, merchants, and small businesses that form the backbone of the Grab ecosystem. Through GrabFinance, these partners gain access to payment systems, savings tools, lending options, and insurance products tailored to their needs. For many driver-partners — whether operating cars or motorcycles — Grab has already provided an entrepreneurial livelihood where none existed before. The addition of integrated financial services allows them to purchase vehicles, manage working capital, and protect themselves against financial risks.

In developing economies, access to credit often determines whether individuals can move from subsistence to sustainable entrepreneurship. Traditional banks frequently avoid lending to small informal entrepreneurs because they lack credit histories, collateral, or stable documentation of income. Digital platforms like Grab can bridge this gap because they possess detailed transaction data about their users. By analyzing ride activity, delivery volumes, and payment histories, Grab can assess creditworthiness in ways that traditional banks cannot. The result is a faster and more inclusive financial system that brings millions of previously excluded individuals into the formal economy.

Grab’s lending solutions for driver-partners have not been without criticism. In a March 2026 article, Nikkei Asia reported that Grab was charging annual effective interest rates exceeding 230% on certain short-term in-app loans provided to motorcycle drivers in the Philippines. The article noted that this figure was several times higher than the maximum interest rates allowed for credit card companies.

However, from economic freedom, economic progress, and poverty alleviation perspectives, such criticism often overlooks the structural realities of lending in developing economies. Microloans — particularly short-term loans provided to borrowers without traditional credit histories — naturally carry higher costs and risks. Processing thousands of small, unsecured loans requires technology infrastructure, risk management systems, and capital that must be priced accordingly. When loan sizes are small and repayment periods short, the annualized interest rate can appear extremely high even if the actual borrowing cost over a short period is relatively modest.

More importantly, the alternative for many borrowers is often no credit at all. Traditional banks frequently refuse to lend to informal workers, leaving entrepreneurs without access to capital when they need it most. Digital lending platforms like Grab are filling a gap that conventional financial institutions have long neglected. For a motorcycle driver who needs immediate funds to repair a vehicle or purchase fuel, fast access to credit can mean the difference between continuing to earn a livelihood or losing income altogether.

Borrowers also voluntarily choose these services because they meet real and urgent needs. Convenience, speed, and accessibility often matter more than headline interest rates, especially when the financing supports productive economic activity. In this context, digital lending platforms can serve as powerful tools of financial inclusion.

Heavy-handed regulations, interest-rate ceilings, or strict government controls may appear to protect borrowers but can produce unintended consequences. When lending becomes unprofitable due to artificial price caps, lenders withdraw from the market. The result is often a shortage of credit, particularly for the highest-risk borrowers who need it most. In many developing economies, such restrictions can inadvertently push borrowers toward informal lenders who charge even higher rates with far fewer protections.

In contrast, flexible lending markets encourage capital to flow toward underserved communities. By allowing innovative financial platforms to operate and compete, governments can expand financial access rather than restrict it. Grab’s financial services ecosystem represents precisely this kind of innovation — one that leverages technology, data, and scale to extend financial tools to millions who were previously excluded.

Ultimately, Grab’s superapp model represents more than just technological convenience. It is part of a broader transformation taking place across Southeast Asia’s digital economy. Drivers gain income opportunities, merchants gain access to new customers, and consumers gain seamless access to transportation, food, and financial services — all within a single platform.

As Southeast Asia continues to urbanize, digitize, and expand economically, platforms that connect everyday economic activity will become increasingly valuable. Grab sits squarely at the center of that transformation. Its ecosystem touches transportation, commerce, payments, and banking — sectors that collectively shape the region’s economic future.

For investors, this combination of strong growth, improving profitability, and deep integration into Southeast Asia’s daily economic life makes Grab a compelling long-term story. If Southeast Asia continues its rise as one of the world’s most dynamic economic regions, Grab’s platform is likely to grow alongside it. In that sense, investing in Grab is not simply a bet on a technology company — it is a bet on the future prosperity of Southeast Asia itself.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to February 27, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +67.7%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by company financials, 27 analysts, and S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

If we had invested US$1 million — or US$142,857 equally into each ETF — on December 31, 2024, the portfolio would have generated a total return (including dividends) of +29.1%, or US$291,283, as of February 20, 2026. That translates to an annualized return of 25.3%.

To put this into perspective, the portfolio outperformed the Vanguard S&P 500 Index Fund, which delivered an annualized return of 16% over the same period. However, it underperformed the Vanguard Emerging Markets Index Fund, which posted an annualized return of 30.4%.

In other words, ASEAN, Inc. beat developed-market U.S. equities but trailed the broader emerging markets rally. That is a respectable outcome — and more importantly, it reveals something deeper about where investor confidence is strongest within Southeast Asia.

Vietnam: The Growth Engine

The standout performer was the Global X MSCI Vietnam ETF, which surged +70.8%.

Investors are clearly optimistic about the Vietnamese market. Corporate earnings have grown at roughly +20% per year over the past three years, and the market is trading at a price-to-earnings (PE) ratio of 15.1x — slightly above its three-year average of 14.8x. When a market trades above its historical average multiple, it usually signals that investors are willing to pay more today because they expect stronger growth tomorrow.

In simple terms, Vietnam is being priced as a high-growth story — and so far, performance has validated that narrative.

Singapore: A Turnaround Story

The iShares MSCI Singapore ETF gained +39.8%.

What is interesting about Singapore is not just the return, but the shift in expectations. Over the past three years, earnings actually declined at an average rate of -1.1% annually. Yet looking ahead, analysts expect earnings to grow +7.7% annually over the next three years.

The market is trading at 16.9x earnings, above its three-year average of 14.3x. Investors appear confident that the earnings cycle has turned. When markets rally ahead of earnings growth, it often reflects renewed confidence in structural resilience — something Singapore is known for as a financial and logistics hub.

ASEAN Top 40: Regional Strength

The Global X FTSE Southeast Asia ETF, which tracks the region’s 40 largest companies, returned +31.3%.

This result suggests that regional blue chips — the “mega-caps” of ASEAN — have broadly participated in the rally. When large-cap stocks lead, it often signals institutional confidence in the region’s economic durability.

Malaysia and Thailand: Steady but Unspectacular

The iShares MSCI Malaysia ETF rose +26.6%, while the iShares MSCI Thailand ETF gained +23.1%.

In both markets, investors appear relatively neutral. Malaysia’s earnings have grown at +7.2% annually over the past three years, and the market trades at 17.6x earnings — very close to its three-year average of 18x. Thailand’s earnings have actually declined at -3.1% annually over the past three years, and its market trades at 18.1x, also close to its historical norm of 17.8x.

When valuations hover near historical averages, it often indicates that markets are pricing in “business as usual” — neither strong optimism nor deep pessimism.

The Philippines: Discounted and Doubted

The iShares MSCI Philippines ETF gained only +10.8%, making it one of the weaker performers.

Here, sentiment is noticeably pessimistic. While earnings have grown at +9.2% annually over the past three years, the market trades at just 10.1x earnings — below its three-year average of 11.9x. Lower valuation multiples typically signal investor caution about future growth.

In other words, the Philippine market is cheaper — but that discount reflects skepticism about whether historical growth can be sustained.

Indonesia: Optimism at a Price

The iShares MSCI Indonesia ETF returned a modest +1.4%.

This is perhaps the most intriguing case. Investors appear optimistic about Indonesia’s long-term prospects, with earnings forecast to grow +16% annually over the next three years — a sharp improvement from the -0.4% annual decline over the past three years. Yet the market trades at 23.3x earnings, well above its three-year average of 20.2x.

In investing, optimism is powerful — but expensive optimism can limit near-term returns. Indonesia’s muted performance suggests that much of the good news may already be priced in.

What ASEAN, Inc. Is Telling Us

When we step back and view ASEAN, Inc. as a single portfolio, several themes emerge.

First, growth matters — and markets that deliver it, like Vietnam, are rewarded disproportionately.

Second, changing expectations can be just as powerful as strong fundamentals. Singapore’s rally reflects renewed confidence more than past performance.

Third, valuation still anchors long-term returns. The Philippines trades at a discount because investors doubt its momentum. Indonesia trades at a premium because investors believe in its future. Over time, reality will determine which market was priced more accurately.

At +29.1% total return and 25.3% annualized, ASEAN, Inc. has proven that Southeast Asia can compete with — and even outperform — developed markets. It did not beat the broader emerging markets universe this time, but it delivered strong, diversified exposure to one of the world’s most dynamic regions.

The experiment continues. ASEAN, Inc. is not just a portfolio — it is a living barometer of investor sentiment, earnings power, and valuation discipline across Southeast Asia. And for now, the region is sending a clear message: growth is back, but it is not evenly distributed.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to January 30, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +62.4%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Let’s assume that on December 31, 2024, we allocated US$1 million equally — US$142,857 each — into seven US-listed exchange-traded funds (ETFs) representing Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, and the region’s 40 largest companies. As of February 13, 2026, this portfolio — “ASEAN Inc.” — has generated a total return (including dividends) of +26.4%, or US$264,376 in gains. That translates to an annualized return of 23.4%.

For context, this outperformed the Vanguard S&P 500 Index Fund, which delivered an annualized return of 15.1% over the same period. However, it trailed the Vanguard Emerging Markets Index Fund, which returned 29.4% annualized. In short, ASEAN Inc. is proving competitive — beating developed markets, though not quite matching the broader emerging markets rally.

Vietnam: The Clear Front-Runner

The undisputed star of the portfolio is the Global X MSCI Vietnam ETF, up +66.9%. Vietnam is galloping away from the rest of the pack at the start of the Year of the Horse.

Investor optimism is palpable. Earnings have grown at approximately +20% annually over the past three years, and the market is currently trading at a price-to-earnings (P/E) ratio of 15.2x — slightly above its three-year average of 14.8x. When valuations rise above historical norms, it usually signals that investors expect continued strong growth. In Vietnam’s case, the market appears confident that its manufacturing expansion, export competitiveness, and domestic consumption story remain intact.

Singapore: Steady and Respected

The iShares MSCI Singapore ETF returned +35.5%, making it the portfolio’s second-best performer.

Singapore represents stability and institutional strength within ASEAN. Earnings are forecast to grow at +7.6% annually over the next three years. Its current P/E ratio of 16.7x is above its three-year average of 14.3x, suggesting investors are willing to pay a premium for predictable, long-term growth. In uncertain global environments, markets often reward reliability — and Singapore fits that mold.

ASEAN’s Blue Chips: Regional Diversification at Work

The Global X FTSE Southeast Asia ETF, which tracks ASEAN’s top 40 largest companies, gained +28.5%. This ETF serves as a proxy for “ASEAN Inc.” itself — housing regional champions across banking, telecom, consumer goods, and energy.

Its strong performance reinforces a broader theme: while individual countries may cycle in and out of favor, Southeast Asia’s largest corporates continue to compound value over time.

Malaysia and Thailand: Neutral Sentiment, Moderate Gains

The iShares MSCI Malaysia ETF returned +25.0%. Investors appear neutral. Earnings have contracted at -4.9% annually over the past three years, and the current P/E ratio of 17.5x sits close to its historical average of 18x. This suggests the market expects stabilization rather than a dramatic turnaround.

Similarly, the iShares MSCI Thailand ETF gained +19.6%. Earnings have declined at -3% annually over the past three years, and the P/E ratio of 17.6x is near its three-year average of 17.8x. In both markets, valuations indicate neither strong pessimism nor exuberance — just cautious equilibrium.

The Philippines: Cheap for a Reason?

The iShares MSCI Philippines ETF rose only +9.8%, making it one of the laggards.

Investor sentiment here is noticeably pessimistic. Although earnings grew at +9.2% annually over the past three years, the market now trades at just 10.2x earnings — well below its three-year average of 11.9x. Lower valuations often signal doubt about future growth. For value-oriented investors, this could represent opportunity — if earnings resilience continues. But for now, the market is demanding a discount.

Indonesia: High Expectations, Flat Returns

The most puzzling result comes from the iShares MSCI Indonesia ETF, which is essentially flat at -0.2%.

This is not due to pessimism. In fact, investors are optimistic. Earnings are forecast to grow +15% annually over the next three years, a sharp reversal from the -0.4% annual contraction of the past three years. However, optimism has already been priced in: the market trades at 23.1x earnings, significantly above its three-year average of 20.2x. When valuations stretch ahead of realized growth, returns can stall — even when the long-term outlook remains strong.

What ASEAN Inc. Tells Us

Several patterns emerge from this experiment.

First, performance dispersion within ASEAN is wide. Vietnam’s +66.9% gain contrasts sharply with Indonesia’s flat return and the Philippines’ modest rise. ASEAN is not a monolith; it is a mosaic of economies moving at different speeds.

Second, valuations matter. Markets trading above historical P/E averages — Vietnam, Singapore, and Indonesia — reflect optimism and high expectations. Markets trading below or near historical averages — Philippines, Malaysia, Thailand — signal caution. Future returns will likely depend on whether earnings growth meets or disappoints these expectations.

Third, diversification works. While not every country outperformed, the equal-weighted portfolio produced a strong 23.4% annualized return, beating the S&P 500 equivalent and demonstrating that Southeast Asia remains a serious contender in global asset allocation.

The Bigger Picture

ASEAN sits at the crossroads of global supply chain diversification, demographic expansion, urbanization, and rising middle-class consumption. Some markets are priced for acceleration; others are priced for stagnation. That tension creates opportunity.

ASEAN Inc. may not have matched the broader emerging markets surge over this period, but it has proven that Southeast Asia deserves a permanent seat at the global investment table. The region is no longer a niche allocation — it is a dynamic growth platform with multiple engines firing at different times.

For investors willing to think regionally rather than nationally, ASEAN Inc. offers something compelling: diversification across six economies and its top 40 companies, exposure to structural growth, and returns that, at least so far, are beating one of the world’s most watched benchmarks.

The race is far from over. But, from December 31, 2024, through February 13, 2026, Southeast Asia is running strong.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to January 30, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +62.4%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

To make the analysis concrete, Let’s assume we allocated US$1 million equally across the seven ETFs, or US$142,857 per market, on December 31, 2024. As of February 6, 2026, that portfolio generated a total return, including dividends, of +23.6%, equivalent to US$236,382 in gains. On an annualized basis, this translates to a 21.3% return. That comfortably outperformed the Vanguard S&P 500 Index Fund’s annualized return of 17.0% over the same period, though it lagged the much stronger 29.1% annualized return of the Vanguard Emerging Markets Index Fund. In other words, ASEAN Inc. delivered solid equity-like performance, beating U.S. large caps, but did not fully keep pace with the broader emerging market rally.

Vietnam was the clear standout within the portfolio. The Global X MSCI Vietnam ETF posted a total return of +58.1%, reflecting a market that continues to attract long-term growth capital. Investor sentiment toward Vietnam is currently relatively neutral, suggesting expectations that corporate earnings will grow broadly in line with historical trends, which have averaged about +19% per year over the past three years. Valuations also appear reasonable: the market is trading close to its three-year average price-to-earnings (PE) ratio of 14.8x, indicating that much of the optimism is grounded in earnings growth rather than multiple expansion.

Singapore delivered another strong showing. The iShares MSCI Singapore ETF returned +35.5% over the period, supported by investor optimism around the city-state’s role as a regional financial hub and a gateway to Asian growth. Earnings are forecast to grow by approximately +7.6% annually over the next three years, a steady pace for a mature market. That optimism, however, has pushed valuations higher, with the market trading at a PE ratio of 16.6x compared with its three-year average of 14.3x. Investors appear willing to pay a premium for stability, dividends, and long-term growth visibility.

The Global X FTSE Southeast Asia ETF, which represents ASEAN’s top 40 companies, generated a total return of +27.7%. This performance sits comfortably between the region’s strongest and weakest markets and highlights the diversification benefits of owning regional champions rather than individual country exposures. The result reinforces the idea that ASEAN’s largest firms, many of which operate across borders, can smooth out country-specific volatility while still capturing regional growth.

Malaysia also delivered a respectable outcome. The iShares MSCI Malaysia ETF returned +24.4%, despite relatively muted earnings expectations. Investors are currently neutral on the Malaysian market, anticipating that earnings will broadly track recent history, which has actually seen a decline of about 5% per year over the past three years. Valuations reflect this caution, with the market trading close to its three-year average PE ratio of 17.9x. Performance here has been driven less by growth enthusiasm and more by stability and income.

Thailand’s equity market produced more modest gains. The iShares MSCI Thailand ETF returned +12.1%, as investors remain cautious amid slow earnings momentum. Market sentiment is neutral, with expectations that earnings will continue to grow — or contract — at roughly the same pace as recent history, which has seen earnings decline by about 3% per year over the past three years. The market’s valuation, at a PE ratio of 17.8x, is close to its three-year average, suggesting limited upside unless earnings trends improve.

The Philippines was one of the laggards in the portfolio. The iShares MSCI Philippines ETF returned just +8.9%, reflecting pessimistic investor sentiment. Investors appear to expect future earnings growth to fall short of the strong historical pace of roughly +9.1% per year seen over the past three years. This caution is visible in valuations: the market is trading at a PE ratio of 10.3x, below its three-year average of 11.9x. While this discount may appeal to value-oriented investors, it also signals concerns about near-term growth and execution.

Indonesia was the weakest performer, with the iShares MSCI Indonesia ETF posting a slight loss of -1.2%. Interestingly, this came despite optimistic investor sentiment about the country’s long-term growth potential. Earnings growth over the past three years has been essentially flat, at around -0.4% per year, yet the market is trading at a relatively high PE ratio of 22.5x, well above its three-year average of 20.1x. This gap suggests that expectations may already be stretched, leaving little margin for disappointment in the short term.

Taken together, ASEAN Inc.’s performance tells a nuanced story. Southeast Asia, as a region, has proven capable of delivering strong, competitive returns, particularly when anchored by faster-growing markets like Vietnam and supported by stable markets such as Singapore and Malaysia. At the same time, wide differences in earnings momentum, valuations, and investor sentiment across countries underline the importance of diversification. For investors, ASEAN Inc. is less about betting on a single market and more about owning a balanced exposure to one of the world’s most dynamic — and uneven — growth regions.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to January 30, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +62.4%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

To test how ASEAN Inc. has actually performed, let’s assume we allocated US$1 million equally across the seven ETFs on December 31, 2024, or US$142,857 per fund. As of January 30, 2026, that portfolio delivered a total return, including dividends, of +22.8%, equivalent to a gain of US$227,797. On an annualized basis, this translates to a 21% return per year. In plain terms, the portfolio turned a million dollars into roughly US$1.2 million in just over a year.

This performance is notable in a global context. Over the same 13-month period, ASEAN Inc. outperformed the Vanguard S&P 500 Index Fund, which delivered an annualized return of 17.5%. While US equities remained strong, Southeast Asia as a group provided higher returns with a very different mix of economic drivers. That said, ASEAN Inc. did trail the Vanguard Emerging Markets Index Fund, which posted a higher annualized return of 27.9%, reflecting stronger rallies in markets such as Colombia, South Korea, and Greece during the same timeframe.

A closer look at the individual country ETFs reveals that ASEAN’s performance was far from uniform.

Total Returns (December 31, 2024 - January 30, 2026):

• Global X MSCI Vietnam ETF (VNAM): +65.3%

• iShares MSCI Singapore ETF (EWS): +34.3%

• Global X FTSE Southeast Asia ETF (ASEA): +24.4%

• iShares MSCI Malaysia ETF (EWM): +22.8%

• iShares MSCI Thailand ETF (THD): +7.8%

• iShares MSCI Philippines ETF (EPHE): +5.9%

• iShares MSCI Indonesia ETF (EIDO): -0.9%

Vietnam was the clear standout. The Global X MSCI Vietnam ETF surged +65.3%, driven by strong earnings growth, renewed foreign investor interest, an upgrade to Emerging Market status, and optimism around Vietnam’s role in global supply chain diversification. Singapore followed with a solid +34.3% return, benefiting from its exposure to banking, real estate investment trusts, and its position as a regional financial hub. The Global X FTSE Southeast Asia ETF, which tracks the region’s 40 largest companies, returned +24.4%, roughly in line with the overall ASEAN Inc. portfolio and highlighting the contribution of regional blue chips.

Malaysia also delivered a respectable +22.8% return, supported by its commodities exposure and steady domestic demand. In contrast, Thailand and the Philippines lagged, with returns of +7.8% and +5.9%, respectively. Thailand’s slower economic recovery weighed on sentiment, while the Philippine market was further dragged down by a massive, ongoing government infrastructure corruption scandal that undermined investor confidence and raised concerns about governance and policy execution. Indonesia was the weakest performer, posting a slight decline of -0.9%, as the market was hit by a sell-off following MSCI’s threatened downgrade of the country to Frontier Market status, which overshadowed its otherwise solid long-term fundamentals and offset gains from its commodity-linked sectors.

What this exercise shows is that ASEAN Inc. behaves much like a real conglomerate. Some “subsidiaries” grow rapidly, others move sideways, and a few may even struggle in the short term. Yet, when combined, the portfolio delivered competitive returns that beat US large-cap equities while offering exposure to faster-growing economies and younger consumer bases. Importantly for investors, this diversification helped smooth out country-specific risks that can be pronounced in emerging markets.

Looking ahead, ASEAN Inc. remains a compelling long-term concept rather than a guaranteed short-term winner. Demographics, urbanization, and rising incomes continue to support the region’s growth story, but performance will vary widely by country and cycle. For investors willing to think beyond single markets, we will continue to track ASEAN as a unified portfolio, which provides a clearer, more balanced way to understand how Southeast Asia performs as an investment destination over time.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to January 30, 2026, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +62.4%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

In Indonesia, the rally was led by Royaltama Mulia Kontraktorindo (RMKO), whose shares jumped an eye-catching 133.8% in a single week. Moves of this magnitude typically reflect either a dramatic reassessment of a company’s earnings power or heightened speculation around corporate actions, project wins, or balance sheet developments. RMKO was followed by Surya Permata Andalan (NATO), up 86.9%, and Satu Visi Putra (VISI), which gained 78.6%. Tifico Fiber Indonesia (TFCO) rose 59.5%, while property developer Lippo Cikarang (LPCK) advanced 54.3%. Collectively, these gains suggest a sudden shift in risk appetite toward smaller and mid-sized Indonesian names, even as the broader market’s year-to-date performance remains relatively modest.

Malaysia saw a steadier but still notable rise in sentiment. Sorento Capital Berhad (SORENTO) led with a 17.9% gain, followed closely by Scicom (MSC) Berhad (SCICOM) at 16.6%. Consumer-facing Aeon (M) Bhd (AEON) gained 11.9%, while Allianz Malaysia Berhad (ALLIANZ) rose 11.1%, pointing to renewed interest in insurance and defensive growth. Velesto Energy Berhad (VELESTO), up 10.7%, benefited from optimism around energy services and offshore activity. Compared with Indonesia, Malaysia’s winners reflect a more balanced mix of growth, cyclicals, and defensive names.

In the Philippines, sentiment favored a combination of media, energy transition, gaming, and commodities. GMA Holdings (GMAP) climbed 11.8%, while SP New Energy (SPNEC) gained 11.5%, highlighting continued enthusiasm for renewable energy themes. During the week, SPNEC announced that it will rebrand as MGEN Renewable Energy and confirmed the resignation of a politician with controversies from its board, which may have helped lift investor confidence. PhilWeb (WEB), a gaming-related name, rose 11.0%, while Nickel Asia (NIKL) and Apex Mining (APX) advanced 10.5% and 9.5%, respectively, reflecting sustained investor interest in metals tied to electrification and infrastructure demand.

Singapore’s market delivered some of the strongest weekly percentage gains in the region. InnoTek (M14) surged 28.0%, while MoneyMax Financial Services (5WJ) rose 24.0%, suggesting renewed confidence in niche industrial and consumer finance businesses. PC Partner Group (PCT) gained 21.9%, matched by Ley Choon Group Holdings (Q0X) at the same percentage, and Sing Holdings (5IC) added 17.0%. These moves point to selective risk-taking in smaller-cap stocks, often where liquidity is thinner and sentiment shifts can translate quickly into price action.

In Thailand, larger and more established names dominated the leaderboard. Delta Electronics (Thailand) (DELTA) rose 18.6%, reflecting sustained optimism around electronics and power management solutions tied to global technology demand. Thai Coconut (COCOCO) gained 16.5%, Bumrungrad Hospital (BH) advanced 16.0%, and Thai Credit Bank (CREDIT) climbed 13.3%. BBGI (BBGI), up 11.9%, added a renewable energy and biofuels angle to the week’s winners. The common thread here is earnings visibility and business models that investors perceive as resilient or structurally advantaged.

Vietnam continued to show breadth in performance, with Cuu Long Pharmaceutical (DCL) leading at 16.5%, followed by IDICO Corporation (IDC) at 15.8%. Duc Giang Chemicals Group (DGC) gained 12.0%, while Thuan Duc (TDP) and Hoang Anh Gia Lai Agricultural (HNG) rose 9.2% and 7.3%, respectively. These gains underscore ongoing investor interest in pharmaceuticals, industrials, and agriculture-related plays within one of the region’s fastest-growing economies.

Stepping back to the regional level, Vietnam currently leads Southeast Asia on a year-to-date basis, with the market up 5.4%. Singapore follows at 3.4%, closely trailed by Malaysia at 3.3%. The Philippines has gained 2.9%, Thailand 2.4%, and Indonesia 2.3%.

While weekly sentiment-driven surges can fade as quickly as they appear, they serve as an important signal. They highlight where investors believe growth, change, or surprise may emerge next — and where the market’s collective expectations are shifting most rapidly as 2026 unfolds.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

The concept is straightforward. Instead of purchasing an entire painting — which can cost millions — investors buy shares that represent partial economic ownership. Much like owning shares of a public company, investors participate in potential appreciation when the artwork is eventually sold. Today, Masterworks has attracted more than one million users worldwide, ranging from first-time investors to experienced collectors seeking diversification beyond stocks and bonds.

The long-term investment case for art rests on its historical performance and unique characteristics. According to Masterworks founder Scott Lynn, contemporary art has outpaced the S&P 500 over long periods, nearly the past 30 years in aggregate. Yet for most of that time, there was no practical or regulated way for everyday investors to participate. Art markets were opaque, illiquid, and dominated by insiders. Masterworks’ core innovation lies in packaging art into structured, transparent, and regulated investment products designed for the retail public.

That vision took a major step forward in November 2022 with the launch of the Stone Ridge Art Risk Premium Fund (AARTX), developed in partnership with Stone Ridge Asset Management. This was the first-ever ’40 Act art fund, placing art investing under the same regulatory framework as mutual funds and interval funds. This means professional oversight, audited financial statements, and investor protections that are standard in traditional finance but historically absent from the art world.

The fund focuses on Post-War and Contemporary artworks, defined as works created from 1945 to the present by established artists with consistent auction histories. Instead of betting on a single masterpiece, the fund provides diversified exposure across more than 175 artworks by over 50 artists, with total value exceeding US$107 million, as of October 2025. Roughly 98.7% of the fund’s assets were allocated to art-related equity holdings, with the balance held in cash and equivalents for liquidity and operations. This diversification mirrors the logic of index investing, helping reduce the risk associated with any single artist or artwork.

Performance has been mixed but revealing. From inception in March 2023 through July 2025, the fund delivered a positive total return on a cumulative basis, though it experienced a −3.94% decline in the 12 months ended July 31, 2025 amid broader weakness in the Post-War and Contemporary art market. Management noted that opportunistic purchases helped offset some of the downturn. More recently, from March 28, 2023 through January 20, 2026, the fund generated an overall return of approximately 6.90%, or an annualized return of 3.29%, illustrating art’s potential role as a diversifying asset rather than a short-term performance vehicle.

Beyond diversified funds, Masterworks also continues to offer individual artworks that highlight how its model works in practice. One of its most recent offerings is Mumps (1993) by Yoshitomo Nara, one of the most recognizable and influential contemporary artists working today. Born in 1959 in Hirosaki, Japan, Nara is best known for his nuanced depictions of children rendered in a “kowa kawaii,” or “creepy-cute,” aesthetic — simultaneously innocent and unsettling. These childlike figures are not only his most famous subject but also the defining motif behind his highest auction prices.

Nara occupies a unique position in the global art market. He is widely regarded as Asia’s most expensive contemporary artist, a distinction that reflects both his cultural influence and market dominance. Since 2005, prices of comparable Nara artworks have risen at an average annual rate of 15.9%, and his paintings have historically appreciated 91% of the time they return to auction, based on 79 repeat sales between 2003 and 2025. Such consistency is rare in the art world, where outcomes can vary widely by artist, period, and subject.

The investment thesis behind Mumps rests on several reinforcing factors. First, the painting features Nara’s record-setting subject matter: the cartoonlike child figure that appears across all of his top auction results. Second, recent comparable sales support the valuation. Since 2018, similar works have sold for prices exceeding Masterworks’ US$1.47 million offering size, with the three most recent transactions closing at approximately US$1.5 million, US$1.65 million, and US$1.6 million. Third, Nara’s market access is unusually strong. He sells the majority of his work in Hong Kong, where more than US$400 million of his art has traded since 2000, giving him deep exposure to one of the most important hubs in the global art economy.

Nara’s influence extends well beyond auction rooms. He has collaborated twice with luxury designer Stella McCartney, contributing designs to runway shows, apparel, and accessories — collections that were commercially successful and frequently sold out. Institutionally, his work is held by some of the world’s most prestigious museums, including the Museum of Modern Art in New York City, the British Museum in London, the National Gallery of Art in Washington, D.C., and the Art Institute of Chicago. High-profile private collectors include Brad Pitt and other figures from fashion and film.

Market data further underscores his standing. In 2024, Yoshitomo Nara was the second-highest-selling contemporary artist at auction globally, surpassed only by Jean-Michel Basquiat, marking his third consecutive year in that position. His risk-adjusted returns are also notable: from 2003 to 2025, Nara’s Sharpe ratio, which is a simple way to measure how much return an investment generated for the amount of risk taken, stood at 1.22, compared with 0.64 for the S&P 500, 0.38 for real estate, and 0.34 for bonds over the same period. In plain terms, a higher Sharpe ratio means an investor is being better “paid” for the risk they are taking, while a lower ratio suggests weaker risk-adjusted performance.

Furthermore, representation by powerhouse galleries Pace and David Zwirner, combined with a major traveling retrospective that opened at the Guggenheim Bilbao in 2024, has further solidified his global stature. Notably, a Masterworks-owned Nara painting was included in that exhibition at the artist’s own request.

Taken together, Masterworks’ platform, its partnership with Stone Ridge, and offerings like Yoshitomo Nara’s Mumps illustrate a broader shift in how art is perceived. Once viewed purely as a cultural or aesthetic pursuit, blue-chip art is increasingly analyzed through the lens of risk, return, and diversification. While art investing is not without volatility or uncertainty, Masterworks has brought structure, data, and accessibility to a historically closed market. The takeaway is clear: investing in world-class art is no longer limited to the ultra-wealthy — it is becoming part of the modern investment landscape.

This article appears in Art+ Magazine.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Jollibee Vietnam (JBVN) presents one of the most remarkable turnaround and expansion stories in the quick service restaurant (QSR) industry. What began in 1996 as a single franchise restaurant in Ho Chi Minh City has, over nearly three decades, grown into a network of about 226 restaurants nationwide — a result of disciplined strategy, localized execution, and deep understanding of the Vietnamese market. This growth has not only made Jollibee a household name in Vietnam but also turned its operations into a major contributor to the revenues and earnings of its parent company, Jollibee Foods Corporation (PSE: JFC).

The early years were challenging. Before 2012, JBVN struggled to gain traction in a market where competitors such as America’s KFC and South Korea’s Lotteria already had strong brand recognition and established consumer habits. With limited consumer awareness and a menu initially tailored to Filipino tastes, the brand struggled to connect with local preferences and generate meaningful revenue, operating at a loss with revenues under US$10 million.

The turning point came with a strategic transformation initiated in 2013, led by a new localization and provincial expansion approach. Recognizing that success in Vietnam required more than simply transplanting a foreign business model, JBVN radically rethought its strategy on multiple fronts. The company re-engineered its menu to align with Vietnamese flavor profiles, introducing products like “Sài Gòn Chili Chicken” that emphasized savory and spicy umami tastes preferred by local consumers. At the same time, Jollibee expanded aggressively into tier 2 and 3 cities, establishing a first-mover advantage in many provincial areas where rents were lower and competition less intense.

A critical part of the strategy was supply chain integration. In 2019, JBVN opened an ISO 22000-certified processing plant in Long An, enabling the company to centrally produce and distribute marinated chicken and sauces. This investment ensured consistent product quality across restaurants and reduced costs by cutting out intermediaries. Coupled with savvy digital marketing that engaged younger customers and a localized leadership team that understood Vietnam’s labor and consumer dynamics, Jollibee redefined its operational and brand position in the market.

The results have been impressive. By 2018, Jollibee had reached its first 100 stores, and by 2025 it operated around 226 restaurants across 64 provincial cities. More importantly, JBVN has overtaken Lotteria and many global competitors in key performance metrics. Despite some rivals operating a larger number of outlets, Jollibee has achieved higher market share and profitability in the QSR fried chicken segment, becoming the number one brand by share (approximately 22%) in Vietnam.

This market success translates directly into a meaningful financial contribution to Jollibee’s parent company. In 2024, Jollibee Vietnam generated EBITDA (earnings before interest, taxes, depreciation, and amortization) of more than VND400 billion, or approximately US$15.2 million — an increase of about 20% from the previous year. This performance made Vietnam the single largest EBITDA contributor among JFC’s international operations across EMEA (Europe, the Middle East, and Asia). Independent industry analyses consistently rank Jollibee Vietnam as one of JFC’s most profitable overseas markets outside the Philippines and China, underscoring how scale, cost efficiency, and strong local demand have translated into durable earnings growth. Vietnam’s momentum continues to reinforce JFC’s broader investment thesis, supported by a young population, rising urban incomes, and sustained demand for affordable, family-oriented dining options.

For investors and observers of global expansion strategies, Jollibee Vietnam underscores an important lesson: international success depends not only on scale but on local relevance and operational excellence. By aligning product offerings with local tastes, optimizing supply chain infrastructure, and executing a thoughtful expansion strategy, JBVN transformed itself from a small franchisee into a powerhouse brand and a key profit driver for its parent company.

Sources:

Case Study: Jollibee Vietnam Strategy Transformation Model (2012–2025)

Vietnam’s fast-food market: Jollibee’s breakthrough

Jollibee Overtakes Lotteria - The New Fast Food Race Among Asia's Giants in Vietnam

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Indonesia

Indonesia stood out for the sheer magnitude of its gains. Soho Global Health more than doubled, rising 104.8% in a single week, as investors reassessed the long-term potential of domestic healthcare and pharmaceutical players in a country with a large, growing population. Satria Mega Kencana and Indospring followed closely, each climbing around 95%, signaling renewed enthusiasm for industrial and automotive-related suppliers as Indonesia’s manufacturing outlook improves. Gains in Abadi Lestari Indonesia and Rockfields Properti Indonesia further underscored a broader rotation into smaller, domestically focused names, particularly those tied to consumption, logistics, and property development. In plain terms, investors were suddenly willing to pay up for growth and recovery stories they had previously ignored.

Malaysia

Malaysia’s top gainers told a different but equally instructive story. Capital A Berhad (formerly AirAsia Group) surged 34.6%, reflecting rising confidence in travel, aviation, and mobility-linked businesses as regional tourism continues to normalize and expand. GuocoLand Malaysia and Bermaz Auto also posted strong gains, highlighting renewed interest in property development and consumer discretionary spending. PMB Technology and Mynews Holdings rounded out the list, suggesting investors are increasingly selective, rewarding companies with clearer earnings visibility and operational leverage. For investors, this means sentiment is shifting toward businesses that directly benefit when people travel more, spend more, and regain confidence in the economy.

Philippines

In the Philippines, the rally was led by Shell Pilipinas, which jumped 37.1% as energy and fuel distribution regained favor amid stable demand and improving margins. Top Frontier Investment Holdings followed with a 28.0% gain, reflecting optimism around diversified holdings with exposure to infrastructure and energy-related assets. Vivant, Vistamalls, and Ayala all posted double-digit gains, reinforcing the idea that investors are warming to established conglomerates and property-linked businesses after a period of caution. This pattern suggests a broader belief that the Philippine economy is entering a steadier phase where cash flows and balance sheet strength matter again.

Singapore

Singapore’s leaders were largely industrial and construction-related companies. Lum Chang Holdings, Tiong Woon Corporation, and Lum Chang Creations all delivered strong gains, pointing to improving sentiment around engineering, construction, and project execution as regional infrastructure spending picks up. Embracing Future Holdings and CNMC Goldmine added to the momentum, showing that investors are also willing to rotate into niche and resource-linked plays when valuations are compelling. For investors, this reflects confidence that long-delayed projects and capital spending cycles are finally moving forward.

Thailand

Thailand’s top performers highlighted a mix of infrastructure, manufacturing, and packaging. Stella X led with a 30.8% surge, while CH. Karnchang’s gains reflected optimism around large-scale construction and public works. Birla Carbon Thailand, SCG Packaging, and Cal-Comp Electronics all rose by similar margins, signaling renewed interest in export-oriented manufacturing and packaging as global demand stabilizes. The message here is simple: when investors believe the worst of an industrial slowdown is over, they move quickly into companies geared to volume growth.

Vietnam

Vietnam rounded out the region with a strong showing from energy, insurance, and financial services. Vietnam National Petroleum Group and PVI Holdings both gained over 20%, reflecting confidence in state-linked enterprises with strategic importance and improving profitability. Ho Chi Minh City Securities and VIX Securities rose sharply, suggesting expectations of higher trading activity and capital market recovery. Dat Phuong Group’s gains pointed to renewed interest in infrastructure and real assets. For investors, this illustrates how rising market activity often lifts brokers, insurers, and energy distributors first.

Taken together, the third week of 2026 was a textbook example of sentiment-driven outperformance across Southeast Asia. These sharp moves do not guarantee long-term success, but they do highlight where investor attention is flowing right now. In emerging and frontier markets especially, perception can change faster than fundamentals, and when it does, prices can re-rate dramatically. For long-term investors, weeks like this are not just about chasing returns, but about identifying which stories may have the staying power to turn short-term excitement into sustained value creation.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Key Rankings

China holds the #1 spot for the third straight year, underpinned by its deep industrial ecosystem. Malaysia jumps to #2 for the first time, while Vietnam slips to #3, reflecting rising regional competition rather than weakening fundamentals. Singapore climbs to #4, India and Indonesia remain steady, and Thailand posts one of the biggest gains. The Philippines falls to #10 and Bangladesh remains last.

Published at the turn of the year by Dezan Shira & Associates, AMI 2026 is a snapshot — but a powerful starting point for identifying Asia’s most competitive manufacturing locations.

Read more: Asia Manufacturing Index 2026

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Indonesia

Indonesia continues to stand out as one of the region’s strongest performers. The market rose 1.8% over the past seven days, driven primarily by Industrials, which gained 4.8%. More striking is the longer-term picture: Indonesian equities are up 27% year-on-year, reflecting strong economic momentum and improving corporate profitability. Looking ahead, earnings are forecast to grow by 15% annually over the next three years, with Consumer Discretionary companies — those selling non-essential goods and services — expected to lead the way at 24% per year. This suggests rising household spending and a growing middle class remain powerful tailwinds.

Malaysia

Malaysia also posted a 1.8% gain over the past week, matching Indonesia’s short-term performance. The rally was led by the Technology sector, which surged 7.5%, highlighting renewed investor interest in digital and semiconductor-related businesses. However, unlike Indonesia, Malaysia’s market has been relatively flat over the past year, up just 1.5%. The forward-looking picture is more encouraging: earnings are expected to grow by 11% annually over the next three years, led by the Materials sector with a robust 34% growth rate. This points to improving demand for commodities and industrial inputs, often an early sign of broader economic acceleration.

Philippines

The Philippine market delivered one of the stronger weekly performances, climbing 2.6%, with Energy stocks rising 5.2%. Despite this recent strength, the market remains down 4.0% year-on-year, reflecting past headwinds such as inflation concerns, a government infrastructure corruption scandal, and tighter financial conditions. For patient investors, this contrast may be important. Earnings are forecast to grow by 11% annually over the next three years, again led by Consumer Discretionary companies at 24% growth per year. In simple terms, corporate profits are expected to rise even though share prices have lagged, a combination that can create opportunities if economic conditions stabilize.

Singapore

Singapore’s market advanced 1.6% over the past week, supported by a 3.4% gain in Industrials. On a year-on-year basis, the market is up a solid 26%, underscoring its role as a stable, high-quality hub within the region. While overall earnings growth is forecast to be more modest at 7.8% annually over the next three years, Healthcare stands out, with earnings expected to grow by an exceptional 51% per year. This reflects structural trends such as aging populations, medical innovation, and Singapore’s positioning as a regional healthcare center.

Thailand

Thailand presents a more mixed picture. The market was essentially flat over the past week, down slightly by 0.5%, even as the Materials sector gained 5.2%. Year-on-year, Thai equities are down 7.1%, making it one of the weaker performers in the region. Yet, the forward outlook suggests a possible turnaround. Earnings are forecast to grow by 12% annually over the next three years, led by Materials at 33% growth per year. This disconnect between weak past performance and improving earnings expectations is often where long-term investors begin to pay closer attention.

Vietnam

Vietnam remains the region’s standout growth story. The market surged 4.6% over the past week, with Utilities soaring by 21%, and is up an extraordinary 51% year-on-year. This reflects strong economic expansion, infrastructure investment, and improving corporate profitability. Looking ahead, earnings are expected to grow by 18% per year over the next several years, led by the Real Estate sector at 24% growth annually. While valuations and volatility warrant caution, Vietnam’s combination of high growth and strong earnings momentum continues to attract investor interest.

Taken together, Southeast Asia’s early-2026 market performance highlights an important lesson: short-term market moves differ, but earnings growth remains broadly supportive across the region. Indonesia, Singapore, and Vietnam are being rewarded for strong fundamentals, while markets like the Philippines and Thailand may offer recovery potential as earnings catch up. For investors, the key takeaway is simple — following earnings growth trends, not just headlines or weekly index moves, remains the most reliable guide to long-term opportunity in Southeast Asia.

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to December 31, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +65.3%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

Financial data was provided by S&P Global Market Intelligence.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.

Dear investors and friends,

As we each take time to celebrate our family traditions this season, it’s interesting to note that candles, lanterns, and lights play a part in many of them. Our celebrations help us get through the dark and cold days of winter. How nice it is at this time of year to focus on what might be possible rather than to retreat into hibernation.

Lights in our celebrations represent hope for the future. As investors, we are driven to do what we do by hopes of what might be possible. We keep going on a quest for positive returns along a path that is not a straight and direct one. Progress is made in fits and spurts. Hope is what keeps us going when the path is uncertain.

We appreciate family, friends, and community to keep us focused when things get tough and to celebrate with us when things go well.

The holidays are about hope for the future. Each year, we enjoy our personal types of celebrations along with all the moments of stress, excitement, joy, wonder, happiness, and sometimes even sadness that come with them. Looking back over the years, the details blur and what remains is richness and color that has been added to our memories.

Thank you for being part of my newsletter and part of my thoughts during our celebrations. I wish you all a joyous holiday season of lights, full of the creation of lasting memories, and the thoughts of good things and valuable investment intelligence to come.

With gratitude,

Eric, The International Investor

🌏 SeA (Southeast Asia) Focus Portfolio Performance Update

The International Investor manages the SeA (Southeast Asia) Focus Portfolio and publishes its investment performance for the informational and educational benefit of investors and readers.

From its inception on December 16, 2023, to November 28, 2025, the portfolio, which invests in the highest-quality and fastest-growing businesses in Southeast Asia at attractive prices, delivered an annualized return of +50.5%, outperforming all Southeast Asian country index funds.

Follow the portfolio here.

The best way to generate superior returns while protecting ourselves from economic and geopolitical uncertainty is to invest in high-quality, cash-generating businesses over the long term that deliver real value to the economies they serve.

The International Investor helps investors make informed decisions by providing profitable and actionable investment intelligence.

The International Investor manages a hedge fund for a select group of investors. The fund invests in the world’s highest-quality businesses with high and sustainable returns on capital at attractive prices and margins of safety relative to what they’re intrinsically worth. The fund maintains a focused portfolio, invests fundamentally and intelligently, and trades infrequently. The fund generates superior returns over time with minimum business risk, regardless of the global market environment.

The International Investor manages the SeA (Southeast Asia) Focus Portfolio for a select group of investors and publishes its investment performance for the informational and educational benefit of investors and readers.

The content is for informational purposes only and is neither an offer to buy or sell securities nor investment advice. Forward-looking statements may be uncertain, and historical returns may not predict future performance. The International Investor is not a registered broker-dealer, investment adviser, or fiduciary.