Knowing what locals want
Global Equities (Regional and Emerging Markets)
Winner
Macquarie Asia New Stars No.1 Fund
Finalists
BT Wholesale Global Emerging Markets Opportunities
Fidelity China Fund
A focus on domestic demand and local consumption within Asia have provided the Macquarie Asia New Stars No. 1 Fund what it takes to win the Global Equities (Regional and Emerging Markets) award.
The winning fund said that focus provided exposure to the structural growth and demographic tailwinds present in the region.
Macquarie Group's co-head and head of Asian listed equities, Sam Le Cornu, said "focused and rigorous fundamental analysis reveals mispriced stocks in inefficient markets," was the fund's investment philosophy.
"Many companies in Asia are not adequately covered by brokers and the sheer number of stocks means that there is a greater chance of companies being overlooked by investors," he said.
"We believe that by focusing on domestic demand and local consumption, and placing strong emphasis on rigorous, detailed and disciplined bottom-up research, we can make the most of this market inefficiency."
Le Cornu said while sustained market volatility presented a challenge in itself, it also presented opportunities the fund had taken "which is to add to strong, quality companies at attractive valuations".
A top down country approach has helped BT Whole Global Emerging Markets Opportunities Fund become a finalist in the category.
The fund's portfolio manager for micro caps, James Syme, said the fund's top down country driven investment process helped identify the top 23 emerging markets and finding out their greatest opportunities and risks.
"Overall emerging markets have had a rough few years but it is now exciting times for emerging markets," Syme said.
"We have certainly seen more interest in the asset class and fund over the last six to nine months. With the recovery with some of the emerging markets that will continue."
For Fidelity China Fund, its success has been thanks to a very strong performance despite China as a region not performing so well, according to Fidelity head of wholesale sales, Nick McDowell.
"Unfortunately China as a region had done about -18 per cent and the fund has done about -10 per cent so from a relative perspective it has done very well," he said.
"At Fidelity we believe in fundamental bottom up research and we do that extremely rigorously to uncover success stories and risks associated with the region."
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