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Top Performing Mutual Funds in Hong Kong and Singapore

Energy stocks gained steam while Greater China equity funds suffered.

Kate Lin, CAIA 29 December, 2021 | 15:04
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The top performing mutual funds of 2021 come from mixed asset classes, and one of them has been helped by the global energy shortage.

As the world moves towards reopening of economies after the long pandemic-related shutdowns, regions like Europe and China faced intense power shortages. Worries about output under a fitful shift to renewable energy sources contributed to the demand-supply imbalance. As a result, after years of struggling, the energy sector staged a revival in 2021. Power producers and other energy-related companies shone in the past 12 months, with energy assets from natural-gas futures to crude-oil trading at or around multiyear highs.

During the period, Schroder ISF Global Energy took the top spot for mutual fund performance in the Hong Kong market. The fund, which comes with a Negative Morningstar Quantitative Rating, scored a 45.0% return in almost one year. Longer-term, the oil-heavy strategy did not fare well, as the category posted a flat return in three years. The same holds true for a similar strategy that becomes this year’s runner-up, Franklin Natural Resources A(acc)EUR, which returned 42.9% this year versus a weaker annualized 4.8% return over the past three years. BGF World Energy A2 ranks the seventh with a 38.4% return, or 3.9% on a 3-year basis.

Other top performers were single-market equity funds, including Manulife GF Taiwan Equity AA, CHNAMC New Horizon CHN A shr A USD Acc, and JPMorgan India Smaller Companies USD.

Top Performing Funds

ISIN

Morningstar Rating

Total Ret YTD

Total Ret Annlzd 3 Yr

Schroder ISF Global Energy A Acc USD

LU0256331488

Negative Q

44.98

-0.89

Franklin Natural Resources A(acc)EUR

LU0300741732

Neutral Q

42.90

4.81

Manulife GF Taiwan Equity AA

LU0278409734

Silver Q

42.14

32.97

CHNAMC New Horizon CHN A shr A USD Acc

LU1077605712

Neutral Q

39.36

39.78

JPMorgan India Smaller Companies USD

MU0204U00022

-

39.04

14.81

HSBC Jintrust Dyn Stgy Mixed Secs Invm H

CNE100002425

-

38.66

50.31

BGF World Energy A2

LU0122376428

Neutral

38.40

3.88

Threadneedle (Lux) Global Tech AS SGD

LU1642822529

Neutral Q

37.67

44.02

JPMorgan Vietnam Opportunities USD

HK0000055811

Gold Q

37.58

19.86

Pictet-Water P EUR

LU0104884860

Neutral Q

35.58

23.63

 

Greater China equity funds took six spots out of the 10 worst performers of 2021. Despite the retreat, the weak performing China funds retained their positive returns for a longer horizon, with all of their 3-year annualized total return staying in the positive terrain. There are also two Brazil equity funds that sit at the bottom of the performance table. They are: HSBC GIF Brazil Equity AC and JPM Brazil Equity A (acc) USD.

Bottom Performing Funds

ISIN

Morningstar Quantitative Rating

Total Ret YTD

Total Ret Annlzd 3 Yr

ICBC Asset Management China Em Ents Fd

HK0000669314

Negative

-39.68

6.45

E Fund (HK) Grtr Chn Leaders A USD Acc

HK0000312378

Bronze

-34.18

14.99

Hang Seng HSCEI Daily (1.5x) Lvrgd Fd A

HK0000284510

-

-33.17

-9.56

HSBC GIF Brazil Equity AC

LU0196696453

Negative

-30.32

-13.29

Invesco PRC Equity A AUDH Acc

LU1775964189

-

-28.55

2.34

JPM Brazil Equity A (acc) USD

LU0318934451

Neutral

-28.07

-5.67

ChinaAMC Return H

CNE100002409

-

-27.92

7.02

BOCIP China Wealth A

HK0000189024

Neutral

-27.74

0.21

UBS (HK) Fd Series-CHN Opp Eq (USD) AAcc

HK0000450137

Silver

-27.35

10.65

UBS (Lux) EF China Oppo(USD) P AUD H acc

LU1227825731

-

-26.94

8.76

Largest Group of Funds

In fact, the largest category of funds available in Hong Kong, Greater China equity, ended the year with a 10.6% loss. But the group of 156 funds posted varied results.

Category

Total Ret YTD

Total Ret Annlzd 3 Yr

EAA Fund Taiwan Large-Cap Equity (5)

28.61

29.98

EAA Fund Taiwan Small/Mid-Cap Equity (1)

19.34

22.75

EAA Fund China Equity - A Shares (25)

0.27

26.38

China Fund Large Blend Equity* (1)

-2.39

25.19

EAA Fund Greater China Equity (17)

-11.02

14.67

EAA Fund Hong Kong Equity (25)

-13.00

3.93

EAA Fund China Equity (71)

-16.09

13.33

EAA Fund Other Equity (9)

-16.51

9.69

* The category is represented by one fund, HSBC Jintrust Large Cap Equity. The product is offered to Hong Kong investors through the Mainland-Hong Kong Mutual Recognition of Funds arrangement.

In the Taiwan market, companies in the electronics industry continue to ride on the shortage story. Some chip designers and foundries saw another year of robust performance – the island’s heaviest weight, wide-moat Taiwan Semiconductor Manufacturing Co. (2330) came with a 17% gain. The overall strength in the Taiwan market buoyed the performance of the large-cap funds, with all five funds distributed in Hong Kong scoring a positive return. The top-performing individual fund was Manulife GF Taiwan Equity. The fund, with a MQR of Silver, gave out an impressive year to date gain of 42.1% and an annualized return of 33.0% over the last three years.

In the Hong Kong/China universe, the onshore A-shares funds held up relatively well. The average return of the 25 products was 0.27%, outperforming the broad category’s 10% loss. The sector-specific regulatory revamp was said to be one of the reasons that dragged Chinese equities, while most of the affected names, such as e-commerce platforms and tutoring centers, were listed outside of the mainland Chinese bourses. On the contrary, the A-shares index was greatly helped by the 7% exposure in basic materials and the 11% in industrials.

Note: Fund returns are calculated based on base currencies. Data as of December 23, 2021. 

 

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About Author

Kate Lin, CAIA

Kate Lin, CAIA  is a Data Journalist for Morningstar Asia, and is based in Hong Kong

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