Investment strategy

Investment objective

To provide attractive risk-adjusted returns over the long term by investing in high quality companies in the Asia ex Japan region.

Investment strategy

The Investment Manager will target a concentrated portfolio of 30-50 undervalued listed securities domiciled in the Asia ex Japan region which may exhibit some or all of the following characteristics:

  • quality management and good corporate governance standards;
  • sound business model;
  • solid financial position; and
  • sufficient growth to justify a premium over the current price in the future.

The Investment Manager intends to provide investors with a portfolio of investments in markets including China, India, Hong Kong, Singapore, South Korea, Taiwan, Indonesia, Thailand, Malaysia, and other Asian countries. The portfolio will be overweight countries and sectors which the investment team believe offer greater potential for higher risk-adjusted returns. The investment team will actively manage the risk profile of the Fund to provide unitholders with an appropriate level of down-side protection and upside gain as broader investor sentiment in the market fluctuates. The Investment Manager also has the ability to invest up to 20% of the portfolio in securities domiciled outside the Asia ex Japan region to allow for companies that fit within the theme of Asian investment but are domiciled elsewhere.

The Investment Manager will target the following portfolio construction parameters (represented as a proportion of the gross value of the Fund, where applicable):

  • 80%-100% in listed equities
  • 30-50 securities
  • 0%-20% cash

At time of purchase, or addition to holdings, a maximum weighting of 15% in any security. At time of purchase, or addition to holdings, a maximum weighting of 20% in securities domiciled outside the Asia ex Japan region. It is not presently intended that the Fund will hedge against currency risk, and as such performance of the Fund will be impacted by currency fluctuations.