The search for yield has turned many investors' attention to emerging Asia, with China, India and Indonesia often featured as preferred investment picks. But Amundi Asset Management has thrown a surprising name into the hat: Singapore.
Equities in the Southeast Asian city-state have outperformed many of their regional peers in the first half of 2017, said Chan Hock Fai, director for investment at Amundi.
So far this year, Singapore's benchmark index, the Straits Times Index (STI), has climbed around 13 percent. That beat the 10 percent gain in Indonesia's Jakarta Composite Index and the 2 percent increase in the Shanghai Composite Index, although it lagged the 15 percent rise in India's Sensex.
Chan pointed to Singapore equity yields coming in between 3 and 3.5 percent as driving gains.
The country's political stability and strong fiscal position add to the attractiveness of its equity market, where valuations are currently cheap, Chan told CNBC in an interview.