The FSA Spy market buzz – 22 February 2025
GMO excludes China; Diversity is rushing to the exit; What is a boutique? Pictet is thinking about families; Sands Capital likes software; JP Morgan’s tech spend; Defense VCs spending and much more.
HEAD-TO-HEAD: BEA Union vs Schroders
FSA compares the BEA Union Hong Kong Growth Fund with the Schroder ISF Hong Kong Equity Fund.
Positive sentiment seems to have spread across the Hong Kong market.
Hong Kong equities measured by the Hang Seng Index, have increased 16% year-to-date, near a two-year high.
Hong Kong equity-focused mutual funds and ETFs have recorded positive inflows for 12 weeks in a row, totalling $1bn, according to a global asset fundflow tracker report by Jefferies.
The compares to $5bn in net fund outflows since May 2015, attributed to under-allocation to China equities, according to the report.
Asset managers also prefer H-shares, or Hong Kong-listed Chinese companies, over their counterparts on the Shanghai and Shenzhen bourses, as reported earlier.
Against this backdrop, Luke Ng, senior vice president of research at FE Advisory Asia, provides a comparative analysis of two Hong Kong equity products, the BEA Union Investment Hong Kong Growth Fund and the Schroder ISF Hong Kong Equity Fund.
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