New Asian addition to Allfunds Bank Insight List 08 January 2016Hong Kong Reporter: Stephanie Palmer
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Allfunds Bank has added a Mirae Asset Management fund to its Insight List, marking the first new addition of 2016.
The list is designed to help wealth managers to estimate what might come about in any particular sector. Researchers assess funds and groups, using subjective methodologies and past figures in order to predict future outcomes.
According to Allfunds, The Mirae Asset Asia Sector Leader Equity fund is well positioned to capture growth opportunities in Asia, and to respond to trends, by investing in sector-lending companies.
The fund has been added to Allfund Bank’s High Conviction list, by virtue of its bottom-up concentrated approach, and alternative exposures to Asia ex-Japan equities.
Its volatility has remained consistently lower than the index, and it has a quality and growth bias in the large- and mid-cap space, meaning it is well placed to capture the rise of the middle classes in Asia.
Enrique Pardo, Global Head of Investment Research at Allfunds Bank, said: “Performance attribution analysis shows that the Mirae manager’s stock selection has been consistently able to generate alpha, even when asset allocation was detrimental.”
“We attribute that to the fund’s agility in capturing changing trends in a fast evolving environment, due to the strength of its fundamental analysis and research team, as well as the skills of fund manager Rahul Chadha. Lead portfolio manager and co-chief investment officer of Mirae Asset Hong Kong, he has been managing the fund since inception.”
The fund also has a good three-year track record, with assets under management reaching $500 million.
According to Pardo, 2015 was “challenging and disappointing” for emerging equities as an asset class, leading many investors to exit emerging markets, and causing further depression of the asset class.
He said: “Some of the largest and most established funds faced the biggest challenges in adapting to constantly evolving market conditions. In contrast, some smaller, local funds weathered the volatility far better, being more flexible in their responses.”
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