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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


Equity99.5%
Fixed Income0
Commodities0
Cash0.5%

Geo


Australia6.17%
China32.9%
Hong Kong5.7%
Japan30.41%
Singapore10.21%
Indonesia2.98%
Thailand3.35%
South Korea3.03%

Sector


Financials 12.69%
Industrials12.42%
Consumer Discretionary17.66%
Real Estate2.81%
Consumer Staples 12.01%
Materials 3.29%
Healthcare3.16%
Utilities
Technology15.72%
Energy3.17%
Communications17.08%

Top Holdings

Asset ClassWeight (%)
1. PDD Holdings Inc4.72%
2. NetEase Inc3.99%
3. Alibaba Group Holding Ltd3.56%
4. Baidu Inc3.52%
5. DBS Group Holdings Ltd3.51%
6. Tokyo Electron Ltd3.48%
7. Thai Beverage PCL3.39%
8. Singapore Airlines Ltd3.32%
9. Panasonic Holdings Corp3.28%
10. Vipshop Holdings Ltd3.28%