Stronger Than ETFs? Experts Reveal 'Active Funds' Hold Key to Taiwan Stocks: These 3 Funds Have Very High Weightings in Chuan-Hu

Following high-level volatility and foreign investor withdrawals in July, Taiwan's stock market experienced a deep-rebound rally in August. On the financial program "Qian Xian Bai Fen Bai," Lipper's Asia-Pacific Research Director Feng Zhiyuan analyzed that actively managed funds from the Nomura series, which bought into Chuan-Hu, demonstrated the strongest rebound momentum.

Who Had the Strongest Rebound?

Feng Zhiyuan stated that the performance recovery of actively managed Taiwan equity funds outpaced small-to-mid cap funds, actively managed ETFs, and passive ETFs. Although many stocks hit trading limits on the first day of the rebound among active ETFs, their overall recovery strength still fell far short of traditional actively managed funds.

Feng explained that since the rebound began on July 29, the driving forces were not large-cap or high-dividend stocks, but rather AI supply chain and niche small-to-mid cap growth stocks selected actively by fund managers. Market capital flowed into sectors such as slide rails, optical communications, application-specific integrated circuits (ASIC), heat dissipation, printed circuit boards (PCB), and AI servers, concentrating on companies including Chuan-Hu, Lian-Ya, Creative, Gao-Li, Xin-Xing, and Quanta.

Analyzing fund performances at July's lowest point, Feng identified three Nomura series funds—"Nomura Quality Fund," "Nomura Aggressive Growth Fund," and "Nomura Hongyun Fund"—as having the highest rebound strength. Their year-to-date investment returns stood at 110.8%, 91.1%, and 114.4%, respectively.

Feng noted that all three Nomura funds had purchased stocks such as Chuan-Hu, Delta Electronics, and Jian-Ce, stating, "If you can't afford top-tier stocks like Chuan-Hu, these funds have already positioned them for investors—and with very high weighting."

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