Aug 29 2017, 06:39 PM
they hear you, they go and find it out and now here it is......
"Affin Hwang Select Asia ex-Japan Quantum Fund :- the fund has been underperforming its benchmark (MSCI Asia ex-Japan Small Cap Index) since April after the soft closure of the fund.
On our opinion, we think that the poor performance of this fund is partially due to the substantial inflow of funds during February to April of 2017 (before the fund soft closed).
By looking at the figure 1, one might notice that the cash holdings for the fund stood above 20% during February to April this year.
Hence, the relatively higher level of cash and cash equivalent instruments during that period might be one of the factor that dragged the returns of the fund (cash drag).
On top of that, the fund also suffered from a sharp plunge in one of its top holdings – Best-Pacific Int Holdings Ltd as the company had issued profit warning on the back of a challenging business outlook.
However, after communicating with the fund house, we understand that the fund manager had trimmed their holdings in that particular stock.
At this juncture, the fund manager has taken a more defensive position with higher allocation (about 20%) into higher yielding companies given the increasing market volatility.
Meanwhile, they still maintain a nimble position in order to grab the opportunity to rotate into more growth-centric names once market stabilises.
https://www.fundsupermart.com.my/main/resea...und-Choice-8782
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