Posted inHead To Head

HEAD-TO-HEAD: First State vs Principal

FSA compares the First State Hong Kong Growth Fund with the Principal LSF Hong Kong Fund.
by Francis Nikolai Acosta
Hong Kong equity funds

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Pictured: Germaine Share, senior analyst for manager research at Morningstar

Hong Kong’s stock market had 2,000 listed companies with a total market capitalisation of $25trn at the end of 2016.

Many companies listed in Hong Kong are either Chinese companies or Hong Kong businesses that have exposure to China, according to Germaine Share, a senior analyst for manager research at Morningstar.

Therefore, fund managers tend to invest in Hong Kong stocks that are tied to the growth of the Chinese economy, she said.

Last year, Hong Kong’s market did better compared to China’s stock markets, with the Hang Seng Index increasing by 0.4%, versus the drop in both the Shanghai (-12.3%) and Shenzhen (-14.7%) markets, according to data from the SFC.

Year-to-date, the Hang Seng Index is up by 11%, according to FE data.

Against this backdrop, Share provides a comparative analysis of two Hong Kong equity products, the First State Hong Kong Growth Fund and the Principal LSF Hong Kong Equity fund.

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