Top 5 Best Performing China Mutual Funds

By: Zacks Investment Research
June 01, 2011

Despite the fact that China has embarked on a program of sustained monetary tightening to rein in inflation, the majority of economists believe that this will have little impact on the country’s growth momentum. According to the recent BCG Global Wealth Survey, China contributed the most to additions in millionaire households in 2010. This is clearly an indication of the country’s economic growth, rising savings and a strong currency. The nation’s economic fundamentals remain well in place and it continues to be an exciting investment destination.

Below we will share with you the 5 best performing China mutual funds year to date.

Mutual Fund                                                                   Zacks Rank                 Total Return YTD
ProFunds Ultra China                                                       #1 Strong Buy                     20.4%
Alger China U.S. Growth                                                  #1 Strong Buy                       9.5%
Direxion Monthly China Bull 2X                                        #1 Strong Buy                       8.8%
Columbia Greater China A                                                #4 Sell                                  7.2%
J Hancock Greater China Opportunities                             #3 Hold                                4.7%

ProFunds UltraChina (UGPIX) seeks to match the daily performance of the Bank of New York Mellon China Select ADR Index It invests the majority of its assets in securities which are similar to those included in this Index. The fund may use leveraged and sampling techniques to fulfill its stated investment objective. The China mutual fund returned 32.84% in the last one year period.

As of February 2011, this China mutual fund held 48 issues, with 9.06% of its total assets invested in Hsb .08% Rp, 3/2/2011.

Alger China US Growth A (CHUSX) invests the majority of its assets in companies with economic linkages to China, Hong Kong, Taiwan as well as the U.S. The fund seeks to purchase equity securities of such firms without regard to their size. This China mutual fund has a five year annualized return of 9.05%.

The China mutual fund has a minimum initial investment of $1,000 and an expense ratio of 2.12% compared to a category average of 1.49%.

Direxion Monthly China Bull 2X (DXHLX) seeks to return twice the monthly price performance of the FTSE/Xinhua China 25 Index on a monthly basis. A large proportion of the fund’s assets are utilized to purchase securities which are included in the index. The China mutual fund returned 21.16% in the last one year period.

The fund manager is Tony Ng and he has managed this China mutual fund since 2007.

Columbia Greater China A (NGCAX) invests heavily in equity securities of firms whose principal operations are conducted in China, Hong Kong, Taiwan and certain other nations. The fund may utilize synthetic instruments to manage risk or enhance portfolio returns. The China mutual fund has a ten year annualized return of 14.22%.

The China mutual fund has a minimum initial investment of $2,000 and an expense ratio of 1.62% compared to a category average of 1.90%.

J Hancock Greater China Opportunities A (JCOAX) seeks capital growth over the long term. At least 80% of its assets are invested in companies located in China, Hong Kong or Taiwan. Not more than 205 of its assets may be invested in companies located outside this region. The China mutual fund returned 19.64% in the last one year period.

The fund manager is Kai Chay and he has managed this China mutual fund since 2011.