There has been a significant drop in exposure to Asia ex Japan funds over the past year, analysis of Asset Allocator's own databases has found.
The databases, which track the holdings of UK discretionary wealth managers, indicate the average exposure to such funds, has dropped by 1.3 per cent over the past year, from 5.3 per cent to 4 per cent, as of November 2023.
The level of exposure peaked in May 2022 at 5.6 per cent.
The DFMs with the largest exposures in this space are Bordier and M&G Wealth at 11 per cent, a total which now represents almost three times the peer group average.
Those allocations can be viewed in the context of the sharp underperformance of the Asia ex Japan sector relative to the broader global equity market over the past three years, as the chart below shows.
At the other end of the distribution, the house with the lowest allocation to Asia ex Japan funds among the allocators we cover include Morningstar, 7IM which have zero allocated there.
Schroder is the fund house with the largest representation in the database, and several popular funds investing in the region.
Schroder's Asian Income is owned by nine of the allocators we cover, and has picked up one new buyer since the start of the year.
The Schroder ISF Asian Total Return fund is the next most popular, appearing in six of the portfolios we cover.
