Top5/Bottom5: China Funds

Top5/Bottom5: China Funds

China’s economic growth has been a cause of worry for investors around the world. Recent economic data points to a lower growth forecast in 2015 against 2014.

While the country’s manufacturing Purchasing Managers Index (PMI) data, an economic indicator to measure the health of the manufacturing sector, has marginally increased for May 2015, its non-manufacturing PMI continues to decline and is a major cause of concern.

Today, we look at the best and worst performing funds with exposure to China. A total of 37 funds sit in the IA’s China/Greater China sector with New Capital China Equity as the top performing fund. The fund saw a return of £1,697 on an initial investment of £1,000 over one year to 2 June.

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The £200.1m fund aims to achieve capital appreciation through investment primarily in quoted securities issued by companies in China and Hong Kong. The fund has an asset allocation of 97.8 per cent in Chinese equities and the remainder in cash. Its top holdings are in the financial and industrial sectors.

Fidelity China Focus is also in the top five performing funds with a return of £1,680 on an initial investment of £1,000 over one year to 2 June. With a £3477.4m size, the fund invests heavily in Chinese equities with financials and consumer discretionary as its top sectors.

The worst performing fund as of today is Aberdeen Global Chinese Equity, but this still posted a return of £1,192 - almost 20 per cent - over the past 12 months. With a size of £1,088.5m, the fund aims at long-term total return to be achieved by investing at least two-thirds of its assets in equities and equity-related securities of companies in China.

It is interesting to note that the top performing funds are overweight on Chinese equities with close to 90 per cent of assets allocated to this sector. The worst performers as of today have a mixed bag of investments that range from Chinese equities to Hong Kong equities and Singapore equities.

Best And Worst China/Greater China Funds, One Year To 2 June 2015
Top 5
New Capital China Equity £1,697
Fidelity China Focus £1,680
HSBC GIF Chinese Equity £1,666
NB China Equity Adviser £1,665
Allianz China Equity £1,611
Bottom 5
Baillie Gilford Greater China £1,314
Templeton China £1,310
First State Greater China Growth £1,300
Neptune Greater China £1,250
Aberdeen Global Chinese Equity £1,192
Figures as of 2 June 2015. Source: FE

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