The Fuh Hwa Small Capital Fund has been investing in smaller Taiwanese-listed companies for over two decades and has been a consistently strong performer.

The fund’s investment strategy is top-down, focusing on anticipating and identifying new trends gleaned from new businesses or industry growth to share price momentum. The process involves bottom-up fundamental stock selection concentrating on companies with leadership in emerging growth industries.

Fuh Hwa has adequate research resources. Each analyst is responsible for less than 50 stocks for this relatively concentrated portfolio with between 30-44 holdings and active portfolio management with more than 81% turnover in the past three years. Valuation targets are used as a risk management process to determine optimum buying price points.

ESG is considered in the investment process. However, only at 5-19% potential environmental impact of the investment target and the 5-19% social impact would be encouraged to expand. Corporate governance has a notably higher material consideration at 50-64%, with the investment team conducting monthly interaction with investee companies.

The fund delivered an excellent performance with net returns 301 points above the benchmark on a 1Y, 3Y, 5Y, and 10Y period.

This fund has been reviewed by three industry veterans of the Benchmark judging committee.