Funds in Singapore and Australia Outperform Asian Rivals

September 21, 2016 James Heinsman Hedge Fund News

The Singapore Merlion at the Bay. Photo courtesy of Erwin Soo.

The Singapore Merlion at the Bay. Photo courtesy of Erwin Soo.

Funds based in Singapore are showing better results than their Asian-based counterparts, according to data collected by Eurekahedge Pte. The reason is that Singapore puts more focus on India and global markets, while Hong Kong and Japanese based funds lean more towards Chinese and/or Japanese securities.

During the first seven months of 2016 funds headquartered in Singapore rose by 2 percent. Hong Kong based funds shrunk by an average of 2.3 percent. Australia-headquartered funds also rose, by 1.9 percent, but those based in Japan declined by 2.5 percent.

Comparing the indices of India with those of China also show the reason for the discrepancy. India’s S&P BSE Sensex Index grew by 9.4 percent so far this year, while China’s CSI 300 Index lost 13 percent, and Japan’s Topix declined by 15 percent.

“Singapore has the most diversified hedge fund industry in Asia with regard to managers’ strategic and regional mandates,” said Mohammad Hassan, head of hedge fund research at Eurekahedge. “Diversification has helped the domestic industry post the best overall gains in Asia, while China and Japan equity-focused centers such as Hong Kong and Japan are in the red.”

Eurekahedge, India funds, Mohammad Hassan, Singapore funds,

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