Morningstar’s 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 third-quarter 2025 report, we highlight four equity funds, three bond funds, and one allocation strategy.
China equities offer structural growth opportunities and exposure to market leaders beyond the recent onshore rally, thanks to increased policy stimuli. Schroder International Selection Fund China A All Cap targets quality companies in this market, emphasizing firms in growth industries that generate cash and have strong financials. The fund also has the flexibility to invest in select offshore and dual-listed names. It benefits from an experienced lead manager and analyst team, most of whom are dedicated to China equities research.
Global emerging-markets equities have also regained investor interest amid US policy uncertainty and a weaker US dollar, while Southeast Asia equities benefit from the region’s robust demographics and status as a beneficiary of ongoing supply chain diversification. and invest in these respective markets using the same high-conviction, quality-growth process that favors firms with capable management teams and entrenched competitive advantages. Both strategies are also led by skilled portfolio managers from FSSA’s well-regarded 14-member investment team.
Income-focused products continue to entice investors amid a volatile market environment. At the higher end of the risk spectrum, Wellington Asia Quality Income taps into the Asia ex-Japan equity opportunity set through a quality-focused, price-conscious approach that is used to invest in companies that offer high dividend yields and capital appreciation potential, with a portfolio yield of around 4%.
UBS US Growth and Income invests in both US stocks and bonds, with a covered-call overlay to enhance portfolio yield to around 5%-6% per year, although its sizable high-yield allocation may limit downside protection in stressed markets.
Moving down the risk spectrum to fixed-income funds, Barings Global Senior Secured Bond has a portfolio yield of around 7% and offers exposure to the secured bond subset of the global high-yield market. The strategy benefits from a seasoned manager duo backed by extensive global credit resources, with credit picks informed by US and European high-yield investment committees.
For Singapore-based investors, invests in predominantly Singapore- and US-dollar-denominated bonds and offers approximately 4% yield, supported by up to 30% investments in high-yield bonds. Amova Short Term Bond follows a more credit- and duration-controlled approach, investing in high-grade, short-duration Asia-Pacific bonds. Both portfolios’ underlying exposure is fully hedged to SGD.
