Hermes Asia ex-Japan Equity Fund F GBP Acc

Asia Equities

Rated Fund 2017-2018. A concentrated portfolio of 'quality deals'

This fund was named the Best Asia Pacific ex Japan Fund in the Money Observer 2016 fund awards, and was highly commended in 2017. Jonathan Pines has managed the fund since its launch in 2012. It has grown to almost �3 billion of assets. Taking a contrarian approach, Pines says he looks for quality deals rather than quality companies. This means that rather than pursuing a growth or value approach to investment, he seeks the best price-to-value propositions, which are often found in less popular parts of the market. He is most concerned about asymmetry � he wants to make great gains if he is right about a company but keep losses to a minimum if he is wrong. He is not afraid to back his conviction, which can see him materially at odds with standard benchmark positioning. The fund is unconstrained and high-conviction. At the end of 2017, it had 46 per cent of its portfolio in China and a further 29 per cent in Korea. There were 64 holdings and the top 10 accounted for almost 38 per cent of assets. Stocks that have done well for the fund in recent years include Baidu, the 'Google of China', and Kepco, Korea's monopoly electricity generator, both of which Pines bought when they were out of favour. Both beat the market's pessimistic earnings expectations and came back into favour. Ben Willis, head of research at Whitechurch Securities, which has used this fund as a core part of clients' Asian equity exposure since 2015, says: 'Pines' skill as a stock-picker has seen him deliver significant alpha [outperformance] over the years.'

Narrative and ratings content all as of 01 January 2018.

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Name
Hermes Asia ex-Japan Equity Fund F GBP Acc
Manager
Hermes Investment Management Ltd
Type
Open Ended Investment Company
ISIN
IE00B8449Z10
Sector
Asia Pacific Excluding Japan
Launched
05/12/2012
OCF
0.84 %
Risk Rating
4
3 Year Sharpe
1.33
3 Year Alpha
4.78
Yield
0 %
Benchmark
MSCI AC Asia Ex JPN IMI NR LCL
The investment objective of the Fund is to achieve long-term capital appreciation by investing primarily in a portfolio of equity securities and equity related securities (such a global depository receipts and American depository receipts) issued by companies in or deriving substantial revenues from emerging countries within the Asia ex-Japan region.
Holding %
ASE Technology Holding Co Ltd 4.77 %
JD.com Inc ADR 4.35 %
Baidu Inc ADR 4.22 %
Clsa P-Note Wuliangye 'a 3.88 %
Alibaba Group Holding Ltd ADR 3.70 %
Kunlun Energy Co Ltd 3.55 %
PetroChina Co Ltd H 3.41 %
Samsung Fire & Marine Insurance Co Ltd 3.23 %
Hyundai Steel Co 3.16 %
Tingyi (Cayman Islands) Holding Corp 2.88 %
Region %
Asia - Emerging 56.82 %
Asia - Developed 43.18 %
Sector %
Technology 32.22 %
Consumer Cyclical 16.54 %
Basic materials 12.14 %
Industrials 10.39 %
Financial Services 9.57 %
Energy 7.44 %
Consumer Defensive 5.31 %
Name
Hermes Investment Management Ltd
Address
E1 8HZ, London, United Kingdom
UCITS
Yes
Legal Structure
Open Ended Investment Company

Managers

Jonathan Pines
Joined 10/01/2013

Jonathan Pines joined Hermes Fund Managers in March 2009 as Portfolio Manager responsible for Asia (ex Japan) within the Emerging Markets team and launched the Hermes Emerging Asia Strategy at the start of 2010. Previously he was a Fund Manager at RAB Capital and Analyst at Orbis Investment Advisory in London. Jonathan grew up in South Africa, where he was a partner at PKF Johannesburg, Chief Investment Officer of Akul Capital (South Africa) and held non-executive directorships of several listed and private South African companies. He holds an MBA from Harvard Business School, is a CFA charter holder and is a chartered accountant.

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