Many mutual funds provide investors with a wide range of exposure to Asian stock market risks. This may help to increase the potential return of the portfolio by contacting high-growth companies and potentially strengthening the currency. The following is a list of three high dividend-paying mutual funds invested in a wide range of Asian countries except Japan.
Aberdeen Asia Pacific (excluding Japan) Stock Fund (APJRX)
Aberdeen Asia Pacific (excluding Japan) Stock Fund ("APJRX") seeks long-term capital appreciation. Normally, the fund invests at least 80% of its net asset value in equity securities of Asia-Pacific (except Japan) companies. The region includes Sri Lanka, Bangladesh, Pakistan, Korea, Taiwan, Hong Kong, Malaysia, Singapore, China, Thailand, Indonesia, Australia, New Zealand, the Philippines and India. The fund's investment team uses a bottom-up approach to select investments focused on first-hand intensive research. Its benchmark index is the Morgan Stanley Capital International Asia-Pacific (excluding Japan) index.
As of March 2016, APJRX is widely diversified in various industries, but its top three industries are financial stocks (31.04%), technical stocks (12.18%) and material stocks (11.01%). Compared with the index, these three plates have increased by 15.3%. In contrast, the fund has severely reduced its holdings in information technology and utilities. APJRX invests in 45 different stockholdings, and the index consists of 697 securities, with the top 10 stockholdings equivalent to 36.9% of the portfolio. The top five countries in the portfolio account for 70.4% of the total portfolio, namely Hong Kong, Singapore, India, Australia and Korea. The fund manages assets of $24.3 million at a cost rate of 1.75%.
HSBC Asia (excluding Japan) Small Company Stock Fund (HAJAX)
HSBC Asia (excluding Japan) Small Company Equity Fund (Hajax) seeks long-term capital appreciation. It invests mainly in diversified portfolios of stocks and equivalents of small companies linked to the Asian economy. HAJAX's portfolio is exposed to China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand. The fund invests in small companies with a market capitalization of $2 billion and may invest 10% of its assets in other open-end funds, including other HSBC funds.
The portfolio invests in more than 160 personal securities. The top five holding companies account for 17.33% of the highest weighted consumption cycles, technology, industry, financial services and real estate industries in the portfolio. Assets under management amounted to $1.97 million, with a cost rate of 1.78%. The disadvantage of this fund is that it has a 5% sales burden. Other categories of the fund, Hajix and Hajsx, are not loaded, but their minimum investments are $1 million and $25 million, respectively.
T. Rowe Price Asia Opportunity Fund (Traox)
T. Rowe Price Asia Opportunities Fund ("Traox") seeks long-term capital growth mainly by investing in stocks of non-Japanese Asian companies. The fund can buy stocks issued by companies of any size, but usually focuses on large and medium-sized stocks. 94% of the portfolio is invested in Asia (excluding Japan), 3.2% in North America, 2.2% in Europe and 0.6% in cash. The top five weighted countries account for 75% of the total portfolio, namely China, Hong Kong, India, South Korea and Singapore. The three industries with the largest investment are finance, information technology and consumer goods. These three sectors account for 72.6% of the portfolio. The fund's asset management scale is $27.4 million, with a cost ratio of 1.15%. Traox's 12-month yield was 0.98%.