The emerging market sell-off kick-started by the Federal Reserve's decision to taper bond purchases hurt the performance of Asia funds throughout May and June.
A number of key markets including Indonesia and India suffered falls due to a currency collapse against the dollar, with the MSCI Asia ex Japan index tumbling 5.29% in the second quarter. Hermes’ Asia ex-Japan Equity fund was one of the few to protect investors’ capital, returning 0.29%. The fund has returned 25.61% since listing in the IMA’s Asia Pacific ex Japan peer group in November last year, topping the sector and returning more than five times the benchmark average of 4.76%. The £134m portfolio, which launched in January 2010 as an institutional-only strategy, is also top-de...
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