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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.

Allocation Breakdown

Asset Class


Equity99.51%
Fixed Income0
Commodities0
Cash0.49%

Geo


Australia6.24%
China30.06%
Hong Kong6.11%
Japan38.41%
Singapore9.57%
Indonesia3.17%
South Korea3.19%

Sector


Financials 6.58%
Industrials10.06%
Consumer Discretionary27.83%
Real Estate3.02%
Consumer Staples 6.49%
Materials 3.05%
Healthcare3.5%
Utilities
Technology15.97%
Energy3.69%
Communications19.3%

Top Holdings

Asset ClassWeight (%)
1. Nintendo Co Ltd3.85%
2. PetroChina Co Ltd3.76%
3. FUJIFILM Holdings Corp3.63%
4. Tokyo Electron Ltd3.61%
5. Mitsui & Co Ltd3.56%
6. Denso Corp3.56%
7. Sony Group Corp3.45%
8. Nippon Telegraph & Telephone Corp3.45%
9. Singapore Airlines Ltd3.43%
10. Takeda Pharmaceutical Co Ltd3.34%