The Fund typically invests in a select number of attractively valued companies exposed to emerging markets or listed on emerging market stock exchanges (usually a minimum 30 long holdings).
Fund's objective is to maximise risk-adjusted, long-term returns by investing in a diversified portfolio of predominantly emerging market companies.
Long term investors in Asian listed equities (For Wholesale Investors Only).
The Fund offers the opportunity to invest in a country that is experiencing strong GDP growth that is forecast to continue for a long time to come (For Wholesale Investors Only).
The Fund seeks to outperform its benchmark, the MSCI India (Net) in AUD over rolling 5 year periods, with less volatility than the stated benchmark (For Wholesale Investors Only)
The Fund seeks to outperform its benchmark, the MSCI India (Net) in AUD over rolling 5 year periods, with less volatility than the stated benchmark.
Australia’s domestic equity market accounts for just 2% of global market capitalisation, limiting home-grown growth opportunities. The Asia-Pacific region now hosts 55% of all publicly listed companies worldwide (vs. 20% in the Americas and 25% in EMEA) and represents roughly one third of total global market capitalisation as of 2025. Emerging markets, including many of Asia’s high-growth economies, comprise about 27% of the global equity market.
In the words of Elizabeth Soon from PineBridge Investments:
‘Asia continues to offer compelling investment potential, benefiting from various opportunity sets across the region. China is shifting from a manufacturer of low-end goods to being a high-end technology producer. Companies are also going global, which leads to the creation of multinational Chinese corporations.'
Asia is expected to be a main driver of global economic growth as described by Krishna Srinivasan, IMF director:
‘(it’s) contributing 60 percent to global growth, is clearly the powerhouse of the global economy.’
Emerging Global Asian Equity Funds and ETFs provide easy and convenient access to the Asian investment opportunity. They are professionally managed, diversified investment vehicles designed to manage currency, political, and market volatility risks on behalf of investors.
They offer exposure to developed economies, like Singapore and Hong Kong, as well as rapidly growing emerging markets, including China, India, Taiwan, South Korea, and ASEAN nations.
Emerging Global Asian Equity Funds are investment vehicles that pool capital from multiple investors to purchase shares in companies across Asia. These funds provide diversified exposure to Asia’s dynamic economies through professionally managed active portfolios aimed at outperforming, or by passively tracking regional indices such as the MSCI AC Asia Index with its exposure to 1,191 Asian stocks.
Australian investors are increasingly turning to Asian Equity Funds to tap into the region’s dynamic economic growth prospects, expanding middle class, and innovation-led industries. With Asia now accounting for a significant and rising share of global GDP, these funds are exposed to powerful structural growth drivers. The IMF expects emerging Asian economic growth to be 5% in 2025, significantly outpacing global growth of 3%. Diversification benefits are also a key attraction as Asian equities often move independently from Western markets.
Before we dive in, here’s a brief definition of some key terms Emerging Global Asian Equity Fund investors need to understand:
Emerging Global Asian Equity Funds cater to various strategies, with Australian providers including Antipodes, Allard, and GlobalX offering diverse options.
There are five main types of Emerging Global Asian Equity Funds worthy of investor’s consideration:
Traditional Asian Managed Funds can be accessed through direct applications with their fund managers, and often require a minimum investment (e.g. $10,000 - $25,000).
The professional managers of these funds select stocks with the objective of outperforming their benchmarks. They aim to leverage extensive on-ground research capabilities to identify outperforming stocks. Many fund managers possess a large network of research professionals based throughout Asia to identify local trends and opportunities.
For example, Traditional Asian Managed Funds like Allard Investment Fund aim to deliver strong long-term returns through a concentrated portfolio of 25-30 Chinese, Indian, and Indonesian stocks. This fund has delivered a 7.7% p.a. return since its inception, and charges a management fee of 1.25% p.a.
In contrast to the active approach of managed funds, ETFs aim to passively replicate the performance of a benchmark like MSCI AC Asia Index.
ETFs offer the diversification of a managed fund with the trading flexibility of a share on the ASX, and they generally charge lower fees than managed funds.
In the words of Covenant Wealth,
‘ETFs offer the advantage of more flexibility. You can buy and sell shares throughout the day at market prices which can be valuable if you want to react promptly to market changes. ETFs also generally (but not always) charge lower fees which, over the long run, can result in the potential for higher returns for your portfolio.’
Passive ETFs, which track broad indices, are the most common type of ETF.
Examples include the Vanguard FTSE Asia ex Japan Shares Index ETF (VAE) with management fees of 0.40% p.a., and the more focused BetaShares Asia Technology Tigers ETF (ASIA), which targets the 50 largest tech companies in Asia (ex-Japan) with management fees of 0.67% p.a.
Active ETFs, in contrast, feature professional management aimed at outperforming but are less common in the Australian market.
Unhedged Funds like Global X India Nifty 50 ETF provide full exposure to currency movements, which can add to gains if the AUD weakens but detract from them if it strengthens.
Currency-Hedged funds use financial instruments to minimise the impact of AUD exchange rate fluctuations on investment returns, providing a return profile closer to the underlying assets' local performance.
Regional/Country Funds focus on specific areas like ASEAN, Greater China, or India. For example, Global X India Nifty 50 ETF invests in the fifty largest companies in India.
Sector/Thematic Funds target specific trends, such as technology innovation (e.g. Betashares Asia Technology Tigers ETF), financial services, or consumer discretionary sectors.
| Feature | Exchange-Traded Funds (ETFs) | Traditional Managed Funds |
| Trading | Traded on the ASX like shares with real-time pricing. | Priced once daily after market close. Applications are made via the fund manager. |
| Fees | Generally lower. Passive ETF fees generally range between ~0.4% and 0.7% p.a. | Generally higher. Active fund fees typically range between ~1.00% and 1.50% p.a. |
| Transparency | High. Portfolio holdings are disclosed regularly (often daily). | Lower. Holdings are typically disclosed quarterly. |
| Accessibility | High. Minimum investment is the price of one unit (often <$100). | Lower. Minimum investments often start from $10,000+. |
The decision between ETFs and managed funds is summarised by Covenant Wealth:
'Ultimately, the choice between ETFs and managed funds hinges on your financial goals, risk tolerance, and investment preferences.’
Asian Equity Funds provide direct exposure to some of the world’s fastest-growing and most populous economies. They also offer diversification benefits away from the more mature markets of Australia, the US, and Europe. The Asian region’s diverse mix of economies, ranging from developed hubs to dynamic emerging nations, provides multiple, and often uncorrelated, drivers of growth.
As Bill Maldonado, Chief Investment Officer at Eastspring Investments, explains:
‘Asia offers deep and well-developed markets as well as less mature markets, each presenting its own set of unique opportunities’.
For example, the Indian economy is benefitting from multiple structural drivers. Huzaifa Husain, Head of Indian Equities at PineBridge Investments, provides context:
‘India remains one of the fastest-growing countries, led by advancements in digitalisation, rising consumption potential, and energy transition initiatives.’
Technology and innovation is a major theme for Asian companies. Asia is a global leader in innovation across semiconductors, e-commerce, fintech, and AI.
Asian Managed Funds and ETFs provide investors with access to the region’s globally significant companies at the forefront of digital transformation such as Taiwan Semiconductor, Tencent Holdings, and Samsung Electronics.
Asia benefits from powerful long-term economic drivers, including a rapidly expanding middle class, increasing urbanisation, and rising consumption. Countries like India have strong structural growth prospects, while regional economies such as Malaysia and Indonesia offer attractive dividend yields for income-seeking investors.
According to Elizabeth Soon, CFA, Head of Asia ex-Japan Equities at PineBridge Investments:
‘Asia continues to offer compelling opportunities for equity investors, benefiting from a range of opportunity sets across the region.’
Asian equity valuations are attractive versus developed markets.
According to Mike Shiao, Chief Investment Officer, Asia ex. Japan, Invesco:
‘Valuations across Asia equities remain compelling. Compared to developed markets, Asia trades at a meaningful discount, both on a relative basis and against its own historical averages. This valuation gap, combined with strong liquidity, especially in a weaker US dollar environment, offers an attractive entry point for long-term investors.’
While offering high growth potential, Asian Equity Funds also involve significant risks including:
💡A Common Mistake to Avoid: Some investors assume all Asian markets carry the same risk profile. In reality, developed markets like Singapore and Hong Kong have a lower risk profile than emerging markets like Vietnam or Indonesia.
💡Pro Tip: Consider currency hedging based on your AUD outlook. In particular, if you expect AUD to strengthen, investing in currency hedged funds may preserve more of your underlying investment gains.
Investing in Asian Equity Funds is generally best suited for individuals with a long-term investment horizon (5-7+ years) who can withstand periods of market volatility.
These funds are ideal for investors seeking:
Understanding tax is crucial for maximising investors’ net returns in Asian Equity Funds.
Here are a few important tax considerations:
Foreign Income & Withholding Tax
Dividends from Asian companies are often subject to a withholding tax in their home country. Australian residents can typically claim a Foreign Income Tax Offset (FITO) to prevent double taxation.
According to the ATO: ‘You may be able to claim a foreign income tax offset (FITO) for foreign tax paid in another country. The offset provides relief from paying double tax.’
Fund Structures
Both ETFs and Managed Funds should provide annual tax statements detailing the different fund return components (dividends, capital gains) and any foreign tax credits.
Capital Gains Tax (CGT)
Selling units in a Managed Fund or ETF for a profit will trigger a CGT event.
The 50% CGT discount is available for assets held longer than 12 months.
Record Keeping
It’s essential to keep detailed records of all transactions, distributions, and currency conversions for tax purposes. Professional tax advice is recommended.
💡Tax Trap: Failing to claim the Foreign Income Tax Offset (FITO) on your Asian Equity Fund income can result in double taxation.
💡Record-Keeping Tip: Maintain detailed records of all transactions, distributions, and currency conversions as the ATO requires comprehensive documentation for foreign investment claims.
Define Goals & Allocation
Clarify your investment horizon, risk tolerance, and income or growth targets.
Determine your objective: is it broad diversification, thematic exposure to tech, or a specific country bet?
Your risk tolerance will define the appropriate allocation size within your global equity portfolio.
Asia’s markets range from emerging to developed, so your allocation should reflect your objectives and risk tolerance.
Use a Core-Satellite Approach
Anchor your portfolio with broad-based Asian ETFs (core) and complement them with high-conviction active funds or thematic plays (satellite). This provides a disciplined framework for combining passive efficiency with active opportunity.
For example, a popular strategy is to use a low-cost, broad-market Asian ETF (like VAE) as the ‘core’ (60-80% of the allocation) and to add smaller, more targeted ‘satellite’ positions in active funds like Antipodes Emerging Markets for potential outperformance.
Robin Parbrook and King Fuei Lee, portfolio managers of the Schroder Asian Total Return Investment Company, note:
‘One of the most effective ways of investing in Asian equities is to disregard the benchmark. The Asian equity opportunity set is large enough and diverse enough for investors to be extremely selective.’
Monitor Key Performance Indicators (KPIs)
Once invested, investors should track their Fund and ETF KPIs, including:
💡Tip: Monitoring KPIs isn’t just about returns. It’s about staying aligned with your strategy.
Rebalancing & Review
Reviewing your portfolio quarterly or semi-annually is an important step.
If you identify that your portfolio has moved away from your target weightings, rebalancing can be prudent. It enforces discipline, helping investors avoid chasing short-term trends.
For example, rebalance by trimming winners or adding to underperformers if your target allocations have drifted significantly. This enforces a ‘buy low, sell high’ discipline. Adjustment triggers could be time-based (e.g. every 6 months) or based on allocation thresholds (e.g. if a holding deviates by more than 5%).
Once you’re ready to compare and select Asian Equity Funds, it’s time to take action.
Use this checklist to apply the knowledge from this guide and make an informed choice on investing in Asian funds and ETFs…
Emerging Global Asian Equity Funds offer a compelling pathway to participate in the world’s main economic growth engine while diversifying your portfolio beyond developed markets. With investment structures ranging from low-cost index ETFs to specialist active funds, there’s a suitable option for most investors.
The potential for superior long-term returns is driven by Asia’s powerful demographics, as well as its technological and economic tailwinds. However, this potential comes with higher risks, including currency volatility and political uncertainty.
A successful investment in Asian Managed Funds and ETFs depends on aligning your fund choice with a long-term timeframe, a suitable risk tolerance, and clear diversification goals. By using a disciplined approach to fund selection and portfolio management, Asian Equity Funds can form a powerful return driver within a well-rounded global investment strategy.
Emerging Asian Equity Funds focus specifically on markets across Asia including both developed (Singapore, Hong Kong) and emerging economies (China, India, ASEAN), whereas Global Small-Cap funds target smaller companies worldwide as defined by market capitalisation.
According to CPD: Comparing the role of Emerging Market equities with World Small Cap equities, both asset classes can be volatile, but ‘emerging market equities have a much higher risk profile than global small caps,’ and EM equities can ‘diversify global allocations’ due to their lower correlation with developed markets. Global Small-Cap funds, in contrast, ‘typically amplify DM equity returns,’ and their risk profile is ‘highly differentiated’.
Key benefits of investing in Asian Equity Funds include:
Asian Equity Fund performance drivers include strong domestic demand growth, rising consumer sentiment, economic policy cycles (especially in China), intra-regional trade flows, and technology sector leadership.
According to Asia Capital Markets Report 2025: ‘Asia is the leading region in the establishment of public equity markets for growth companies,’ but challenges such as ‘regulatory hurdles and high entry costs continue to restrict smaller companies’ access to financing.’
When evaluating Asian Equity Fund and ETF transparency and fees, it’s important to investigate:
Fund Disclosure and Transparency
Check for a current PDS and regular fund fact sheets. Ensure the fund discloses its top holdings, sector and country allocations, benchmark details, and whether it’s active or passive. High fund turnover may signal higher costs and tax inefficiency.
Fees and Costs
Review fund fees and the management expense ratio, performance fees, buy/sell spreads, and transaction costs. In general, ETFs are cheaper than active funds. Watch for hidden platform or FX costs. Ensure any performance fee is benchmark-based and fair.
For example, Antipodes Emerging Markets (Managed Fund) charges a total cost ratio (which includes fees and expenses) of 0.95% p.a.
Market Access and Currency Exposure
Confirm a prospective fund’s regional exposure aligns with your goals (e.g. China, India, ASEAN). Check if its currency is hedged to AUD. Watch for overconcentration in specific countries or sectors unless that’s intentional.
Performance and Reporting
Ensure fund performance is reported net of fees, across 1, 3, and 5 years. Compare it to a benchmark. Look at tracking error, volatility, and return consistency. Avoid funds with a poor or erratic performance history.
Manager Quality and Governance
Check the manager’s experience, firm reputation, and ASIC registration. Prioritise funds from well-resourced providers. If a ESG strategy is claimed, verify how it’s implemented. Trustworthy funds disclose governance and risk management practices clearly. For active funds, assess research depth and local expertise.
Once you’ve decided to invest in Asian Equity Funds or ETFs, here are the six steps to follow with the help of InvestmentMarkets:
Define Your Investment Objective
Start by clarifying your investment goals: Are you seeking long-term growth, income, or diversification across emerging and developed Asian markets?
InvestmentMarkets helps you search for funds and ETFs based on your investment horizon, risk appetite, and asset class preferences.
Compare ETF and Managed Fund Options Side-by-Side
Use the platform’s intuitive search tools and fund comparison function to browse a broad range of Asian ETFs and Managed Funds:
Filter by Region, Sector, and Strategy
Drill down by country (e.g. India, China, Japan), thematic focus (e.g. technology, infrastructure), or investment style (e.g. passive vs active). Every fund is clearly labelled with its strategy, top holdings, and risk indicators.
Review Key Metrics and Due Diligence Tools
InvestmentMarkets presents fund risk ratings, historical performance, fees, and manager profiles. It’s all in one place—no guesswork.
Build a Shortlist and Test its Fit Against Your Portfolio
Use the Compare Fund function to evaluate how each ETF or fund aligns with your broader allocation. Consider using a core-satellite structure, anchored with diversified ETFs and complementing with concentrated active funds.
Take Action with Confidence
Once you’ve chosen a product, you’ll be linked directly to the provider or platform to invest. No hidden fees or selling bias—just clear, independent insight.
💡Final Tip: Check out the Asian funds and ETFs available on InvestmentMarkets now.
