Baring Eastern Trust - Class I GBP Inc

Asia Equities

Rated Fund 2017-2018. Invests in new generation of entrepreneurs

Baring Eastern's manager Hyung Jin Lee invests in 'new Asia' rather than traditional or 'old Asia' companies. He uses 'new Asia' to describe the next generation of companies emerging across the region, as opposed to those found in economic areas that have already experienced strong expansion, such as real estate, industrials, materials, mining, oil and some areas of finance, which he believes may not have as much future potential.

Based in Hong Kong, he is head of Asian equities at Barings and has managed this fund, which invests across the Asia Pacific region excluding Japan, since 2012.

Lee looks for companies with long-term structural growth drivers that meet his quality 'growth at a reasonable price' (Garp) criteria. Qualities that he favours include entrepreneurship, innovation and the use of cutting-edge technology. Companies with these characteristics can be found in a wide range of industries including tourism, healthcare, consumer discretionary, consumer staples, education and beauty.

However, he says the specific sector is unimportant. He is searching for market leaders with the right combination of growth and quality characteristics wherever he can find them. He says he finds these 'new Asia' opportunities right across the region, although mostly in North Asian countries, such as China and South Korea, where economic development is greater and infrastructure stronger. The portfolio had around 60 holdings at the end of 2017.

Wealth manager Rowan Dartington uses this fund for clients and rates it as 'under the radar', despite having produced 'outstanding' performance. Investment director Tim Cockerill says it uses a 'very completed and rounded process, which incorporates environmental, social and governance 'an important factor when investing in Asia'.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Name
Baring Eastern Trust - Class I GBP Inc
Manager
Baring Fund Managers Ltd
Type
Unit Trust
ISIN
GB00B85JKH42
Sector
Asia Pacific Excluding Japan
Launched
12/12/2012
OCF
1.07 %
Risk Rating
3
3 Year Sharpe
0.97
3 Year Alpha
3.06
Yield
0.5 %
Benchmark
MSCI AC Asia Ex Japan GR USD
The investment objective of the Trust is to achieve long-term capital growth by investing in the Asia Pacific region excluding Japan. The Trust will seek to achieve its investment objective by investing at least 70% of its total assets directly and indirectly in equities and equity-related securities of companies incorporated in, or exercising the predominant part of their economic activity in the Asia Pacific region excluding Japan, or quoted or traded on the stock exchanges in those countries, including developed and emerging markets.
Holding %
Tencent Holdings Ltd 6.27 %
Samsung Electronics Co Ltd Participating Preferred 4.22 %
Yangzijiang Shipbuilding (Holdings) Ltd 2.71 %
Ping An Insurance (Group) Co. of China Ltd H 2.63 %
ZTE Corp H 2.49 %
China Molybdenum Co Ltd H 2.45 %
Taiwan Semiconductor Manufacturing Co Ltd 2.43 %
GlobalWafers Co Ltd 2.31 %
OCI Co Ltd 2.26 %
Samsung BioLogics Co Ltd 2.09 %
Region %
Asia - Emerging 60.69 %
Asia - Developed 37.88 %
Sector %
Technology 32.58 %
Financial Services 15.64 %
Industrials 13.94 %
Consumer Cyclical 12.81 %
Basic materials 8.49 %
Energy 6.28 %
Name
Baring Fund Managers Ltd
Address
EX4 4EP, Devon, United Kingdom
UCITS
Yes
Legal Structure
Unit Trust

Managers

Hyeonjin Lee
Joined 09/01/2012

Data provided by Morningstar.

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