The Fuh Hwa Asian Pacific Balanced Fund aims to provide long-term capital appreciation and stable income by investing in bonds and equities listed in the Asia Pacific and has been a consistent performer.

The fund must keep at least 50% of its net assets in Taiwan-listed securities and at least 70% in the Asia Pacific, conferring a relatively broad mandate. The fund has a sizeable tilt toward growth technologies, and solid geographic diversification is emphasized as a risk management tool. The investment process involves deep fundamental company and industry research, supported by an analyst bench with diverse expertise across science, biotechnology, and technology in addition to finance.

The strategy highlights new industry growth trends through fundamental research and other proprietary methods to select key beneficiaries. It will then construct a portfolio of selected equities, bonds, or other securities using target entry valuations to manage risk and performance. The portfolio has held between 45-59 securities past three years have, and portfolio turnover at between 41-50% has been reasonable.

The degree to which portfolio managers can deviate is up to 5 percentage points. We are pleased to see the fund has conducted stress tests under a substantial rise in market volatility, sharp fall in asset prices, a sharp drop in liquidity, and the net outflow of funds.

The contact frequency with investees/potential investees was once a quarter on average in the past year, and we encourage this to be expanded.

The fund delivered strong performance with net returns of more than 301 points above the benchmark on a 1Y, 3Y, and 5Y, and 7Y period. Despite being a balanced Fund, it does exhibit notable volatility, with its maximum drawdown between 25-30% in the past three years.

This fund has been reviewed by three industry veterans of the Benchmark judging committee.