Although the region’s equity markets have been hard-hit during the past month of turbulence and panic in global financial markets, they have fared better than other regions. The MSCI AC Asia ex-Japan index is down 14.94% this year-to-13 March, compared with a 20.93% decline by the MSCI AC World index and a 19.89% fall in the MSCI Emerging Markets index, according to FE Fundinfo data.
The best performing funds are those that have managed to contain their losses to single digits — and there aren’t many. Indeed, there are only seven out of 112 products authorised by the Securities and Futures Commission for sale to Hong Kong retail investors that have been able to do so.
Their relative stability, compared with the worst performing funds, reflects the differences in equity market performance within the region: the MSCI China index is down 9.5% this year, whereas the MSCI Asean index has plunged 25.62%.
So, it is no surprise that the standout fund, the ICBC Asia Selection Growth Fund, has a 96% weighting to China (and Hong Kong) stocks. It has fallen only 3.47% this year, although AUM is only about $3m.
Other relatively resilient funds include products managed by Zeal, Matthews, Mirea and Invesco, whose returns range between -6.96% and -7.30%; the Matthews Asia ex-Japan fund has the smallest allocation to China/Hong Kong, with a 52% weighting.
In contrast, funds which have suffered most have concentrated their holding in Southeast Asia, and have posted returns ranging from -28.33% (Amundi) to -23.54% (JP Morgan).
None of the bottom five performers have more than 3% allocated to China stocks, according to their fund factsheets.
Best performing Asia-Pacific ex-Japan funds
| Fund* |
Return year-to-16 March |
China/Hong Kong weighting** |
| ICBC Asia Selection Growth |
-3.47% |
96% |
| Zeal Voyage China |
-6.96% |
76% |
| Matthews Asia ex-Japan |
-7.26% |
52% |
| Mirae Asset Asia Great Consumer |
-7.28% |
66% |
| Invesco Asia Consumer Demand |
-7.30% |
66% |
Source: FE Fundinfo. *Authorised by Securities and Futures Exchange. **Fund factsheets
Worst performing Asia-Pacific ex-Japan funds
| Fund* |
Return year-to-16 March |
China/Hong Kong weighting** |
| Amundi Equity Asean |
-28.33% |
<1% |
| Blackrock GF Asean Leaders |
-26.65% |
0.3% |
| Fidelity Asean |
-25.99% |
2.6% |
| JP Morgan SAR Asian |
-25.49% |
<3% |
| JP Morgan Asean |
-23.54% |
<1% |
