Only four fund sectors positive in 2018

Asset Class in Focus

This year’s best performing fund category in the Hong Kong universe was actually 2017’s worst performer.

Only four fund sectors, or categories, out of 52 in the Hong Kong SFC-registered universe are positive year-to-date, FE data shows.

The top performing category was US dollar currency funds, up 1.31%.

FE defines this category as “funds that invest the majority of their assets in US dollar-denominated/money market hedge instruments (short-term debts), such as commercial papers, short-term bonds or treasury bills”.

Because the Hong Kong dollar is pegged to the US dollar, it is no surprise that the Hong Kong dollar currency category is the second best performer with a 1.17% return.

Healthcare funds were the only positive equity sector.

 

Top performing fund categories 2018

US dollar currency funds1.31
Hong Kong dollar currency funds1.17
Healthcare sector equity0.63
Hong Kong dollar bonds0.10
US dollar bonds-1.94
*year-to-17 December. FE defined categories in the SFC-registered universe. Fund NAVs in US dollars.

 

Equity categories dominated in the cellar. Is it time to buy into these categories as a contrarian play?

 

Worst performing 2018

Korea equities-20.64
Europe small/mid cap-19.52
China equities-18.52
Eurozone equities-17.98
UK equities-16.57
*year-to-17 December. FE defined categories in the SFC-registered universe. Fund NAVs in US dollars.

Stark reversal

A big surprise was the reversal from 2017, across all categories. Last year, not one fund category was negative.

The “worst” category in 2017 was this year’s best – US dollar currency funds.

 

Top performing categories 2017

Greater China41.19
Consumer goods & services40.14
Emerging Asia40.12
India38.98
Hong Kong38.52
Source FE. Fund NAVs in US dollars. All the above categories are equity funds. Universe is SFC-registered products. Note this is full year 2017 performance vs 2018 charts which show year-to-17 December.

 

Worst performers 2017

US dollar currency funds0.44
Hong Kong dollar bonds1.60
Hong Kong dollar currency2.38
Physical commodity2.43
US Dollar bonds3.40
Source FE. Fund NAVs in US dollars. Universe is SFC-registered products. Note this is full year 2017 performance vs 2018 charts which show year-to-17 December.

 

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