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The best and the worst funds – July 2017

Allianz, UBS, Schroders, Castlestone -- these firms had funds among the best and the worst performers over the last three years.

The top…

FSA analysed the three-year cumulative return data for the month of July on funds authorised for sale in Hong Kong and Singapore.

China funds still topped the list of the best three-year returns on 31 July.

As in June, the top performers were the UBS China A Opportunity Fund, the Allianz China A-Shares Fund and the Schroder China Equity Alpha Fund.

The best two outperformed their benchmark, the MCSI China A index by almost 60 percentage points and the Schroders’ fund by nearly 50. (The index’s return was 41.4%)

The Allianz fund, managed by Anthony Wong, has ongoing charges (OCF) of 2.30%. While the OCF is not available for the two other funds, their annual charge is 25 basis points lower than Allianz’s.

Fund

Three-year return, in US dollars

UBS China A Opportunity Fund

98.8%

Allianz China A-Shares Fund

98.5%

Schroder China Equity Alpha Fund

89.8%

Data: FE, on 31 July 2017

On a one-year basis, the two funds that made the list in June have now been joined by the BOCHK Wise CSI HK Listed Mainland Real Estate Tracker Fund. It delivered a whopping 74.5% return during the past 12 months, most of it since the low in the late December 2016.

Fund

One-year return, in US dollars

BOCHK WISE CSI HK Listed Mainland Real Estate Tracker

74.5%

Old Mutual UK Smaller Companies Focus

69.5%

iShares Euro Stoxx Banks 30-15 Ucits ETF

63.5% 

Data: FE, on 31 July 2017

Chinese real estate has been on a roll recently, with demand and property prices surging in smaller cities, while big cities have seen restrictions aimed at fending off a property price bubble. 

1-year performance of BOCHK Wise CSI HK Listed Mainland Real Estate Tracker Fund

Note: the BOCHK Wise CSI HK Listed Mainland Real Estate Tracker Fund follows the CSI Hong Kong Listed Tradable Mainland Real Estate Index. The MSCI China index is shown for reference only.

The bottom…

The worst performers over the last three years have not changed since May. The euro-denominated UBS CMCI Oil ETF, the Castlestone Aliquot Precious Metals Fund and the Schroder ISF Global Energy Fund remained at the bottom of the list. In terms of cumulative returns, each fund lost 57%-68% during the past three years.

Fund

Three-year return, in US dollars

Castlestone Aliquot Precious Metals Fund

-68.3%

UBS CMCI Oil ETF

-64.6%

Schroder ISF Global Energy Fund

-57.7%

Data: FE, on 31 July 2017 

The Castlestone fund, like the USB Oil ETF, is passive, so its poor performance reflects the market prices of the precious metals in which it invests.

The fund has also found its way into our one-year worst performers list, together with another precious metal passive product, the Market Vectors Junior Gold Miners ETF. The poor performance as measured on 31 July partly stems from the gold price which, in the context of the last 12 months, peaked in early August 2016, at $1,364.

The Odey Swan, run by the former hedge fund manager Crispin Odey, remains on the list.

Fund

One-year return, in US dollars

Castlestone Aliquot Precious Metals Fund

-42.5%

Odey Swan

-30.3%

VanEck Market Vectors Junior Gold Miners

-29.2%

 Data: FE, on 31 July 2017

Part of the Mark Allen Group.