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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 (%)-11.5211.9820.35-14.22-16.290.08
Annualized ReturnStandard DeviationDividend Yield
Portfolio2.27%16.93%3.7%

Allocation Breakdown

Asset Class


Equity99.45%
Fixed Income0
Commodities0
Cash0.55%

Geo


Australia6.49%
China38.01%
Hong Kong5.8%
Japan29.58%
Singapore9.98%
Indonesia2.94%
Thailand3.4%
South Korea3.25%

Sector


Financials 13.13%
Industrials11.95%
Consumer Discretionary18.47%
Real Estate2.82%
Consumer Staples 11.04%
Materials 3.57%
Healthcare3.04%
Utilities
Technology15.61%
Energy3.05%
Communications17.32%

Top Holdings

Asset ClassWeight (%)
1. PDD Holdings Inc5.55%
2. NetEase Inc4.55%
3. DBS Group Holdings Ltd3.79%
4. Nippon Telegraph & Telephone Corp3.66%
5. BHP Group Ltd3.52%
6. Alibaba Group Holding Ltd3.51%
7. BYD Co Ltd3.49%
8. Industrial & Commercial Bank of China Ltd3.47%
9. Thai Beverage PCL3.45%
10. Tokyo Electron Ltd3.42%