Launched in 2006, the Yuanta Global Emerging Market Fund of Funds invests in dedicated emerging market funds seeking capital growth and has delivered consistent outperformance.

The fund of funds strategy is to achieve greater diversification through multiple funds focused on the accelerated growth in emerging markets while also increasing weighting in best performing funds. Diversification is achieved with a clearly defined investment decision process using three parts: an evaluation model of the target fund, technical trend model, and relative strength model. Through these three indicators, a decision is made on the overall portfolio targets and relative weights.

We note that in 2020 that is the Manager's relative strength for having a model to evaluate the relative strength to identify buying signals through fundamentals and trend analysis for its buying decision, which improved performance.

It would be helpful if the Manager conducted a stress test of its approach. There is also a need to improve corporate disclosure and ESG practices and refer to the impact of the investees' on social and environment and the rigor of corporate governance to keep up with the market trends.

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