Fund managers in Hong Kong and Singapore have been producing better returns from investments in the region over the past 12 months than their counterparts from Britain or the United States, according to a study. The survey carried out by Standard & Poor's Fund Research revealed, however, that locally based managers only performed better than their US and British counterparts, when the market was rising. When it was falling, British and US-based funds investing in the region did better. In the 12 months to October 1, locally based Southeast Asian funds produced returns worth 73.4 per cent in sterling terms, compared to 68.6 per cent from British-based fund managers. During the Asian crisis, however, investors in locally based funds saw average losses of 51.2 per cent, while British-based funds saw losses of 46.8 per cent. 'In difficult or falling markets, locally managed funds underperform their UK-US peers, falling further, even though, typically, they are more able to raise higher cash levels,' S&P said.