And the winner of the Asia Pacific award is...
1-year return: 7.0%
3-year return: 80.6%
Last year’s runner-up, JPM Asia Growth is this year’s Best Asia Pacific fund. Its performance leads the pack over three years – a feat it has achieved with remarkable consistency.
The fund, which also entered our Rated Funds universe for 2019, benefits from the stewardship of Joanna Kwok and Mark Davids, both of whom have more than 20 years of investment experience. They are able to draw on a well-resourced emerging markets and Asia Pacific team at JP Morgan Asset Management.
They believe Asia still offers an attractive investment case as the opportunity set continues to evolve. Their strategy is to invest in their best ideas, with a focus on quality growth companies in the region that boast sustainably high returns over time.
The managers build the portfolio based on the convictions of in-house sector analysts and country specialists . As a consequence, its make-up can differ significantly from the MSCI All Country Asia ex Japan index.
The portfolio contains up to 60 names, typically structural growth ideas – companies that boast quality franchises and consistent earnings streams. Kwok and Davids have a preference for selected financials, consumer discretionary and technology stocks.
The fund’s largest regional weighting is to China, where almost 40% of its £309 million of assets is invested. Should trade tensions escalate further, the Chinese government could step up its supportive effort again, stimulating the domestic economy and boosting confidence.
HIGHLY COMMENDED FUND
Firmly in the first quartile of Asia Pacific funds, Schroder Asian Alpha Plus benefits from one of the most seasoned managers in the region as well as a wide network of research analysts at Schroders. London-based Matthew Dobbs has been running money since 1985.
He believes Asia is an attractive place to invest thanks to the scope for growth and its dynamism.
He looks for quality companies with strong balance sheets, and good cashflows and corporate governance, which he can purchase at what he deems a reasonable price. In seeking these out, he has the support of a team of 38 Asia Pacific ex-Japan analysts.
The fund has around 60 holdings with half in Asia’s powerhouse of mainland China and Hong Kong. Favourite sectors are financials, tech and consumer stocks.
Benefiting from investing with conviction in best ideas