Mirae Asset's China fund gives handsome returns

The China Advantage fund of Mirae Asset Management, the only such rupee denominated fund for the Indian retail investors, has produced 25.53 per cent return in the year to May 31, outperforming benchmark MSCI China Index hands down.

MSCI China during the period gave a return of 12.90 per cent.

Mr Arindam Ghosh, CEO of Mirae Asset Management, told

Business Line here on Thursday that the open-ended fund, launched on November 5, 2009, could fetch additional alpha as it did not necessarily hug the globally accepted China benchmark.

“The fund portfolio has been tweaked in favour of consumption, particularly the high-end stories of China. In the sector allocation, information technology was accorded almost same priority weight, closely followed by materials and industrials. Compared with sector weights of MSCI China, our portfolio focussed more on consumer discretionary (Mirae Advantage Fund's 16.55 per cent against 5.44 of MSCI China). Unlike MSCI index, Mirae fund does not have a strong bias in favour of financials and energy sector,” Mr Ghosh explained.

Focus on Hong Kong companies, particularly the consumer discretionary players, gave the Mirae Asset China Advantage Fund (MACAF) an edge over the MSCI China.

Since the inception, the fund returned 8.25 per cent, while the benchmark produced 2.86 per cent in the comparable period.

The asset under management of Mirae Asset China Advantage Fund, which tracks the Shanghai Composite stocks, is Rs 101.7 crore. “This marked a 264 per cent growth in AUM last year,” Mr Ghosh added.