Morningstar’s manager research analysts in Asia qualitatively cover a wide range of managed strategies. In addition, we continuously monitor the broader fund universe through discovery meetings. In this quarterly publication, we share our take on a selection of these strategies. For our second-quarter 2026 report, we highlight some tech-focused equity funds, including those with exposure to artificial intelligence-related companies, as well as income-generating allocation strategies, a perennial favorite among Asian investors.
AI has reshaped the global investment landscape, creating some of the world’s most valuable companies today. While US AI-related firms often dominate global headlines, companies in Asian markets, such as those in Taiwan and Korea, also offer compelling opportunities through their role as “picks and shovels” providers in the buildout of AI infrastructure. Investors should be mindful of investing in a narrow investment universe, though, whether it be sector or geographical, as it entails higher risks and can result in pronounced swings in performance, and investors should only use such funds as a satellite allocation in their portfolios.
Wellington Asia Technology leverages research from the firm’s impressive technology sector global industry analyst team to tap into this opportunity set, with a historical emphasis on companies in the semiconductor industry. Allianz China Future Technologies offers more targeted exposure to innovative companies with high and/or growing levels of research and development across both onshore and offshore China markets, including areas like AI, internet/e-commerce platforms, and electric vehicles.
Of the USD 18 billion that flowed into Morningstar EAA Fund Sector Equity Technology funds over the past year ended May 2026, 87% went to passive strategies. iShares Hang Seng Tech ETF is a low-cost way to gain exposure to a narrow subset of the global tech universe, tracking an index of the 30 largest tech and tech-enabled companies listed in Hong Kong. While the index’s limited exposure to upstream AI hardware names has weighed on performance since launch, it added leading Chinese generative AI firms Zhipu and MiniMax in June 2026 following their January 2026 listings.
Conversely, upstream AI hardware companies SK Hynix and Samsung Electronics contributed heavily to the South Korea equity market’s recent rally. Barings Korea Trust maintains moderate exposure to these two chipmakers due to portfolio diversification rules. Despite the manager finding some success across a wider range of Korean companies, the forced underweighting in these names has weighed on the fund’s recent performance against market indexes amid increasing market concentration.
Meanwhile, multi-asset strategies focused on both income and growth offer more diversified and stable returns amid global market volatility. Wellington Multi-Asset Income and Growth leverages multiple income streams from equities, selling covered-call options, fixed income, and liquid alternatives, to meet a payout target of 4%-8%. While the fund has consistently delivered income, there are risks associated with selling covered-call options. Value Partners Asian Income delivers a portfolio yield of around 4% over time through stock dividends and bond coupons, with the flexibility to pursue growth-oriented investments; recently, the equity sleeve has exposure to both traditional dividend-yielders and AI beneficiaries.
For the full report, please visit: https://www.morningstar.com/en-hk/business/insights/research/apac-investment-opportunities
