uploads///Portfolio Composition

What Are the Portfolio Compositions of FHKCX and JCOAX?

Lynn Noah - Author
By

Nov. 20 2020, Updated 11:27 a.m. ET

MSCI Golden Dragon Index

The Fidelity China Region Fund Class C (FHKCX) and the John Hancock Greater China Opportunities Fund Class A (JCOAX) benchmark their performance to the MSCI Golden Dragon Index.

The MSCI Golden Dragon Index consists of large-cap and mid-cap China stocks and non-domestic China securities listed in Hong Kong, Taiwan, and Mainland China. According to MSCI, as of the end of July, 73.6% of the index’s securities were listed in Hong Kong, 26.2% in Taiwan, and 0.2% in China.

The MSCI Golden Dragon Index is dominated by the financial sector with a 40.9% weight. The information technology sector stood second with 21.9%, and the industrial sector stood third with 7.3%. Between the two funds, the JCOAX more closely mirrors the composition of the MSCI Golden Dragon Index.

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Portfolio composition of the funds

Financials form the biggest holdings for both these funds, though both are underweight in the sector in relation to their benchmark. While 37.2% of the FHKCX’s portfolio is made up of financials stocks, these stocks form 3% of JCOAX’s portfolio. Meanwhile, 40.9% of the benchmark is in the financial sector.

Except consumer staples, all other sectors have varying composition levels in the two funds. The FHKCX has bets on the healthcare, consumer discretionary, and the materials sectors as compared to the benchmark. On the other hand, the JCOAX is overweight in the information technology, industrials, and consumer discretionary sectors as compared to the benchmark.

The JCOAX has 5.8% of its assets invested in the utilities sector, but the FHKCX has only 0.4% of its assets in stocks from that sector. The JCOAX’s top three holdings are Taiwan Semiconductor Manufacturing (TSM), Tencent Holdings (TCEHY), and China Mobile (CHL), which account for 17% of its portfolio.

The FHKCX’s top three holdings include AIA Group (AAGIY), Ping An Insurance (PNGAY), and Industrial and Commercial Bank of China (IDCBY), which form 13.5% of its portfolio.

In the next article, we’ll look at the portfolio composition of the other two funds we’re examining in this series.

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