Asia Leaders
A high conviction stock portfolio targeting leading Asian stocks. As Asia transitions from an export manufacturing hub to a global driver of consumptions, Asia's leaders today may become the global leaders of tomorrow.
Strategy Description
- Asia is the fastest growing major economic region in the world and will remain so:
- Asia’s GDP will overtake the GDP of the rest of the world combined in 2020 or 2021
- By 2030, the region is expected to contribute roughly 60% of global growth
- Asia will be home to 90% of the 2.4 billion new members of the global middle class
- Yet most investors have minimal exposure due to the make-up of global indices, which are largely constructed by Western index providers; ~50% of GDP but only ~20% of MSCI All Country World
- Asia is transitioning from the world’s factory to the world’s innovator. Asian companies are increasingly winning at home vs global companies and are now expanding beyond their borders.
- Our Asia Leaders portfolio seeks to target the leaders in the highest growth sectors in Asia, namely healthcare, technology and consumer brands. These world class firms have a large and increasingly rich domestic audience as well as a sustainable competitive advantage by virtue of their intangible assets, which are difficult to clone or re-create. These include strong brand recognition, high levels of innovation, customer loyalty, government support and large distribution networks.
Allocation Breakdown
Asset Class
Equity
99.35%
Cash
0.65%
Geography
China
44.34%
Japan
35.01%
Australia
7.67%
Hong Kong
5.74%
Indonesia
5.57%
Singapore
1.03%
Sector
Communications
27.17%
Consumer Discretionary
21.65%
Technology
14.71%
Financials
12.61%
Healthcare
9.29%
Industrials
5.32%
Materials
5.14%
Real Estate
4.11%
Top Holdings
Position
Weight（%）
1.
Telkom Indonesia Persero Tbk PT
5.57
2.
BHP Group Ltd
5.11
3.
NetEase Inc
5.07
4.
Industrial & Commercial Bank of China Ltd
4.60
5.
Nippon Telegraph & Telephone Corp
4.33
Position
Weight（%）
6.
Ping An Insurance Group Co of China Ltd
4.14
7.
Swire Properties Ltd
4.08
8.
Nintendo Co Ltd
4.03
9.
BYD Co Ltd
3.89
10.
China Life Insurance Co Ltd
3.79
