Funds focused on quality falter in second quarter

Asian equity funds performed well in the second quarter in a "rally driven by junk", but a correction may be on the cards for the autumn, according to the fund services divison of rating agency Standard & Poor's. The median Pacific fund returned 27.4% in the quarter and its Southeast Asia counterpart returned 31.6%, according to a S&P Fund Services survey released yesterday. Investors in Southeast Asian smaller companies fared even better, with the median small-cap fund retur…