Asia Dragon Trust plc

Asia-Pacific Equities

New for 2020. A more conservative approach and overweights to India and Hong Kong

This investment trust has outperformed the index over one, three and five years. In our 2020 line-up it replaces Invesco Asia, which has disappointed. Asia Dragon is part of the Aberdeen Standard Investments stable, which has a large Asia-Pacific equities team of around 40, led by Flavia Cheong. She is named as a key person in the trust alongside co-managers Adrian Lim and Pruksa Iamthongthong, who joined Lim as co-manager towards the end of 2019.

In building a portfolio that has almost 70 holdings, the co-managers focus on quality and value. In looking for quality, they consider multiple factors, including franchise power, balance sheet strength and corporate governance. Analysts use valuation methods, including price/earnings and price/cash flow metrics, to assess a business or industry.

Following a period of underperformance, Lim has added aggressively to China holdings, taking the allocation from 15% in 2017 to 29% today, although this remains below the MSCI AC Asia ex Japan index’s 37% allocation.

The trust’s largest geographical overweight positions are to India and Hong Kong. Despite manufacturing, export, consumer and business confidence weakening in Asia, the managers point out that the region still contributes more than two-thirds of global growth and remains the world’s fastest-growing region. The trust’s focus on Asian consumer names has helped drive recent growth.

Charles Stanley analyst Rob Morgan likes Asia Dragon for more risk-averse investors. “The low-turnover, conservative style lends itself to outperformance in weak markets and can complement racier funds in the region.”

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
Asia Dragon Trust plc
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0002945029
Sector
Asia Pacific
Launched
07/09/1987
OCF
0.83 %
Risk Rating
3
3 Year Sharpe
0.60
3 Year Alpha
2.19
Yield
1.1 %
Benchmark
MSCI AC Asia Ex Japan GR USD
Fund Size
£ 438.07 million
NAV
391
Gearing
105
Discount Premium
-10
The objective is long-term capital growth through investment in Asia, with the exception of Japan and Australasia. Investments are made primarily in stock markets in the region, principally in large companies. When appropriate, the Company will utilise gearing to maximise long term returns.
Holding %
Tencent Holdings Ltd 8.76 %
Samsung Electronics Co Ltd Participating Preferred 8.14 %
Taiwan Semiconductor Manufacturing Co Ltd 7.57 %
Ping An Insurance (Group) Co. of China Ltd Class H 3.58 %
AIA Group Ltd 3.15 %
Housing Development Finance Corp Ltd 3.09 %
PT Bank Central Asia Tbk 2.95 %
China Resources Land Ltd 2.76 %
Oversea-Chinese Banking Corp Ltd 2.52 %
Kweichow Moutai Co Ltd 2.29 %
Region %
Asia - Emerging 60.19 %
Asia - Developed 38.17 %
Sector %
Financial Services 26.35 %
Technology 23.31 %
Communication Services 12.03 %
Real Estate 9.41 %
Consumer Defensive 6.67 %
Industrials 6.52 %
Consumer Cyclical 6.01 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Pruksa Iamthongthong
Joined 08/31/2018

Pruksa Iamthongthong is an Investment Director on the Asian Equities Team at Aberdeen Standard Investments. Pruksa joined Aberdeen Asset Management in 2007. Pruksa graduated with a BA in Business Administration from Chulalongkorn University, Thailand and is a CFA® charterholder.

Adrian Lim
Joined 08/31/2007

Adrian Lim is a Senior Investment Manager on the Asian Equities Team. Adrian originally joined Aberdeen in 2001 as a Manager on the Private Equity Team, on the acquisition of Murray Johnstone, but transferred to his current post soon afterwards. Previously, Adrian worked for Arthur Andersen LLP as an Associate Director advising clients on mergers & acquisitions in the region. Adrian holds a BAcc from Nanyang Technological University, Singapore and is a CFA® charterholder. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

Data provided by Morningstar.

The Content is only for your general information and use and is not intended to address your particular requirements. The Content does not constitute any form of advice, recommendation or arrangement by Money Observer and is not intended to be relied upon by you in making (or refraining from making) any specific investment or other decisions. Appropriate independent advice should be obtained before making any such decision.

This information is sourced from our partner Morningstar. We believe the data to be correct however you should take care in using any information.

You should be aware that prices may fall as well as rise and that the income derived can go down as well as up. When buying or selling any investment that fluctuates in price or value you may get back less than you invested. Past performance is not necessarily a guide to future performance.