Manager caution brings underperformance


So are the markets moving in to broad sunlit uplands, or are we headed back in to the woods with the bear just around the corner? Fund performance for April suggests that many managers have been taking no chances. As in March, fund returns lagged the markets considerably.

The AsiaHedge Composite Index lagged the MSCI Pacific Free Net by 8%, growing just 2.7% compared to the benchmark's rise of 10.7%.

It is a similar story for the specific strategy indices. All have lagged by a lot - especially in Japan where the AsiaHedge Equity Japan USD index stood up