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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.
PrintFact Sheet

Portfolio Performance

20182019202020212022YTD
Portfolio (%)-11.5211.9870.59-14.22-16.318.7
Annualized ReturnStandard DeviationDividend Yield
Portfolio3.39%17.04%3.3%

Allocation Breakdown

Asset Class


Equity99.63%
Fixed Income0
Commodities0
Cash0.37%

Geo


Australia5.64%
China43.4%
Hong Kong6.54%
Japan30.04%
Singapore5.55%
Indonesia2.65%
Thailand2.92%
South Korea2.9%

Sector


Financials 14.96%
Industrials11.7%
Consumer Discretionary19.75%
Real Estate3.66%
Consumer Staples 8.44%
Materials 2.79%
Healthcare3.14%
Utilities
Technology15.14%
Energy4.22%
Communications16.19%

Top Holdings

Asset ClassWeight (%)
1. Vipshop Holdings Ltd5.22%
2. China Life Insurance Co Ltd4.80%
3. Ping An Insurance Group Co of China Ltd4.57%
4. China Petroleum & Chemical Corp4.21%
5. Renesas Electronics Corp3.70%
6. Swire Properties Ltd3.65%
7. Baidu Inc3.60%
8. NetEase Inc3.57%
9. BYD Co Ltd3.32%
10. Sony Group Corp3.21%