If you were to use the Funds Selector to select Asian ex Japan (geographical sectors) equity (main categories) funds, you would see an intimidating list of 34 funds. Even though they were classified under one category, the funds follow different benchmarks and the underlying country exposures would thus be a little different. As such we are reclassifying these 34 funds into 3 new categories based on their benchmarks. If they do not have a benchmark (a few do not), we would categorise the fund based on the fund’s objective, as reflected in its factsheet and prospectus. We believe this new classification would help investors find the funds appropriate to their investment needs more easily.
| Table of newly classified Funds |
| DBS Shenton Asia Pacific Fund |
DBS Asia Knowledge |
Aberdeen Pacific Equity |
| Franklin Templeton Asian Growth Fund |
United Asia Fund |
Aberdeen Asian Smaller Companies |
| First State Asia Innovation |
APS Alpha |
DWS Asian Small/Mid Cap |
| First State Asian Growth |
Allianz RCM Little Dragons |
First State Dividend Advantage |
| Fullerton Asian Financials* |
DWS Asia Premier Trust |
Henderson Horizon Asian Dividend Income Fund |
| HSBC GIF Asia ex Japan Equity Smaller Companies |
Fidelity Asian Special Situations |
Lionglobal Asia Pac Recovery Fund |
| HSBC GIF Asia ex Japan Equity |
Fidelity South East Asia Fund |
Lionglobal Asia Pacific Fund |
| Henderson Pacific Dragon Fund |
Schroder Asian Growth |
Russell Pacific Basin Equity Fund |
| Legg Mason BatteryMarch Asia Pacific Equity Fund |
United Asia Fund |
United Asian Growth Opportunities |
| LionGlobal Asia Infrastructure Fund |
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Schroder Asian Equity Yield Fund |
| PRU Asian Infrastructure Equity Fund |
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| Legg Mason Asia Enterprise |
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1Relevant benchmark is MSCI AC Asia ex Japan Index which invests into China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand.
2Relevant benchmark is MSCI AC Far East ex Japan Index which invests into China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand
3Relevant benchmark is MSCI Asia Pacific ex Japan Index which invests into Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand
*Fullerton Asian Financials Fund is benchmarked against MSCI AC Asia ex-Japan Financials Index |
Geographical Allocation: Asia ex Japan
The funds classified under Asia ex Japan are benchmarked against MSCI AC Asia ex Japan index which is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of Asia, excluding Japan. MSCI AC Asia ex Japan Index consists of the following 10 developed and emerging markets indices: China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand.
Geographical Sector: Asia ex India & Japan
The funds classified under Asia ex India & Japan are benchmarked against MSCI MSCI AC Far East ex Japan Index which is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of the Far East, excluding Japan and India. MSCI AC Far East ex Japan Index consists of the following 9 developed and emerging markets indices: China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand.
Geographical Sector: Asia Pacific ex Japan
The funds classified under Asia Pacific ex Japan are benchmarked against MSCI AC Asia Pacific ex Japan index which is a free float-adjusted market capitalisation weighted index that is designed to measure the equity market performance of Asia, excluding Japan but including Australia and New Zealand. MSCI AC Asia Pacific ex Japan Index consists of the following 12 developed and emerging markets indices: Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, New Zealand, Philippines, Singapore, Taiwan, and Thailand.
With the new classifications, investors who would like to have exposure to Australia and New Zealand in addition to Asia, can use the Funds Selector to select equity funds under the Asia Pacific ex Japan geographical sector allocation. For investors who already have a single-country India fund and are looking for Asia exposure excluding India, they can use the Funds Selector to select equity funds under the Asia ex India & Japan.
The new classification aims to make things easier for investors; however, it is not a fool-proof method as fund managers may deviate significantly from their benchmark. For example, Allianz RCM Little Dragons Fund is benchmarked against MSCI AC Far East ex Japan Index which does not take into account Indian, Australia or New Zealand equities but taking a closer look at the December 2009 factsheet, the fund had 8% and 5.4% allocation to India and Australia respectively. So even with the new classifications, investors are encouraged to examine the fund’s latest factsheet to find out about its underlying exposure before investing. |
CPFIS Registered Investment Administrator
