Baring Eastern Trust - Class I GBP Inc
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
|Tencent Holdings Ltd||6.88 %|
|Samsung Electronics Co Ltd Participating Preferred||4.35 %|
|SK Hynix Inc||3.06 %|
|Ping An Insurance (Group) Co. of China Ltd H||2.66 %|
|GlobalWafers Co Ltd||2.47 %|
|AIA Group Ltd||2.43 %|
|Haier Electronics Group Co Ltd||2.41 %|
|Yangzijiang Shipbuilding (Holdings) Ltd||2.26 %|
|Taiwan Semiconductor Manufacturing Co Ltd||2.11 %|
|Shinsegae Co Ltd||2.11 %|
|Asia - Emerging||56.72 %|
|Asia - Developed||40.55 %|
|Financial Services||19.32 %|
|Consumer Cyclical||15.56 %|
Data provided by Morningstar.
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