Funds News
- Funds return more than 10 percent last month
Date: 14-Jun-2007 Sources: (Shenzhen Daily)
DOMESTIC mutual funds posted more than 10 percent monthly returns across a range of categories in May, despite a 5 percent tumble in the main equities index at the end of the month, a research report by Lipper said yesterday.
Six foreign A-share mutual funds tracked by Lipper, known as Qualified Foreign Institutional Investors (QFIIs), returned 11.29 percent on average last month.
But a total of eight QFII funds for which data were available suffered a net outflow of US$900 million, said Lipper, a global fund intelligence firm owned by Reuters.
Domestic equity funds gained an average of 10.64 percent in net asset value, while domestic balanced funds, which invest in both stocks and bonds, returned 10.22-10.58 percent, depending on category, the report showed.
Domestic funds' returns in May were far below the 16.07-21.40 percent gain, a record monthly rise, in net asset value, which they racked up in April.
The benchmark Shanghai stock index plunged 5 percent in the final two days of May after the government tripled the share trading tax. The index fell as much as 21 percent, but recovered most of the losses.
Domestic funds' returns in May were roughly in line with a slightly more than 10 percent gain in the CSI300 index, which tracks 300 A shares, during the month, Lipper said.
Lipper monitors 15 QFII funds and the assets of 14 funds totaled US$5.76 billion at the end of May, down from US$6.61 billion a month earlier. One of the 15 does not make public its monthly net asset value.
Of the six QFII funds for which Lipper reports monthly performance, ING China A Share Fund P Class was the top performer in May, with a 14.86 percent return, it said. JF China Pioneer A-Share fund followed with a return of 14.39 percent.
Of the eight QFII funds for which Lipper monitors inflows and outflows, six suffered a net outflow, while two saw a net inflow, resulting in a combined net outflow of US$900 million.
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