Three Elite Asian equity funds with 200%+ returns over the past ten years

Asia Pacific is an intriguing mixed bag for investors, comprising both developed and developing countries and offering some of the best growth opportunities in the world. These opportunities come hand-in-hand with their fair share of risk and July 2017 is a good reminder of this. It marks 20 years since the Asian financial crisis, where currencies plummeted and many economies went into recession.

Learn more: What is investing risk?

For some investors, however, the risks of the region have paid off over the long run. While none of our Elite Rated Asian equity funds were quite around back in 1997, many of them have long track records of outperformance and three have delivered total returns in sterling of more than 200% in the past decade.

What’s more, these funds are well positioned to take advantage of potential future growth in the region with their focus on sectors such as consumer and information technology, and their experienced fund managers who know how to find companies with a strong sense of responsibility towards their shareholders. These factors have helped their funds not only to beat their sector peers but, in many cases, to do so with less volatility.

Schroder Oriental Income – up 222%^

An investment trust run by the same manager who looks after Elite Rated Schroder Asian Alpha Plus fund, Schroder Oriental Income has delivered exceptional returns for its shareholders thanks to a focus on valuations and a willingness to invest in ‘non-consensus’ ideas. The trust currently makes the most of its Asia Pacific remit to hold a mix of developed and developing countries including Hong Kong, Australia, Taiwan, Singapore, China, South Korea and Thailand. The income approach adds a relative stability to this trust versus many others in the region, especially when combined with the manager’s total return mindset.

First State Greater China Growth – up 206%^

China’s macro risks aside, this fund has consistently delivered positive performance over a long time period and has been a firm favourite of FundCalibre directors for many years. It got so popular that it had to close to new investments for four years, re-opening only in February 2016. The ‘Greater China’ mandate incorporates Hong Kong and Taiwan too, and this has helped the fund to be less volatile than some of its peers. The fund currently has just under 30% invested in Taiwan, which is a notably more defensive market than mainland China. Consumer discretionary and healthcare are key themes where the fund is overweight versus the index.

Stewart Investors Asia Pacific Leaders – up 201%^

A concentrated way to invest in Asia, this fund has around 40% invested in its top ten holdings and a total portfolio of just 44 companies across India, Taiwan and Hong Kong, as well as small allocations to developed markets including Japan and Australia. It has achieved its outperformance by backing quality, sustainable companies for the long term. Managers David Gait and Sahi Reddy, who also run Elite Rated Stewart Investors Asia Pacific Sustainability, invest with a stewardship mindset and don’t trade unnecessarily, which has helped the fund to be less volatile than the sector.

^FE Analytics, TR in GBP, 10/07/2007–10/07/2017

This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.