Question 1 Question 1 [22 marks] Covid-19 pandemic has been affecting economies globally, which eventually impacted the equity market of the countries. The table below illustrates the performance of returns of three (3) funds managed by three (3) different managers. The funds are Eastspring Investment China Equity fund (EDF). Public Investment Japan Dynamic MY-AUD Hedged (PJD) and Malaysian Kenanga Growth fund (KGF). As an amateur investor who are looking to diversify your risk, you planned to combine one of these funds into your existing portfolio. For comparison, the benchmark indices for each of these funds are DJ Market Greater China Index (DJCI), MSCI Japan JPY Index (MJJ) and Kuala Lumpur Composite Index (KLCI). (1) Using the tracking error method, advise on which fund has over/under perform the benchmark index and suggest a fund you should select considering the current economic condition. (19 marks) (1) Identify the possible strategy these managers have performed (passive or active) over their period of investment (3 marks) Date REDF RDJCI RPJD RMJJ RKGF RKLCI 9/4/2021 0.5 0.8 4.1 -0.6 0.7 0.6 14/4/2021 1.4 1.7 -0.3 1.2 0.2 0.1 15/4/2021 0.2 0.3 -2.5 0.2 1.1 1.2 16/4/2021 1 0.6 -1.6 -1.3 1 -0.1 17/4/2021 1.3 1.1 2.4 2 1.5 20/4/2021 0.2 0.4 0.8 -0.9 0.4 21/4/2021 -1.7 -2.2 -1.9 -1.3 -2 -2.2 22/4/2021 0.5 1.2 -1.8 -0.6 0.4 23/4/2021 -0.3 -0.1 2.8 1.3 -0.5 0 24/4/2021 -0.6 -0.7 -0.5 -0.4 -0.4 -0.9 1.8 0 0