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The objective of the fund is to grow capital by investing in primarily large-cap companies in the Asia Pacific region (excluding Japan). Fund manager David Gait invests from the bottom-up with an absolute return mindset and without any benchmark constraints. He favours high quality companies identified to be cash generative with strong balance sheets. Engagement with management of portfolio companies is key: Gait and his team make sure that senior managers’ interests are aligned with shareholders. The final portfolio is concentrated, with investments held for the long term.
|Dividends paid||31 Mar, 30 Sep|
|Standard initial charge||4.00%|
|Initial charge via Bestinvest||0.00%|
|Additional bid/offer spread||0.00%|
|Annual management charge||0.85%|
|Ongoing charges figure||0.90%|
Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.
Though David Gait only became lead manager of this fund in 2016, he is a First State veteran having worked for the company since 1997 and had already built up a strong track record on its Asia Pacific Sustainability fund, which is run with the same investment mantra. He also benefits from the backing of a strong and stable analyst team. Gait is a cautious investor, prioritising capital preservation more than most of his peers, and as a result tends to outperform in falling markets, but lag when they rise strongly.
|High yield bonds||0|
Manager David Gait employs a fundamental, bottom-up investment approach, targeting companies deemed to have sustainable quality characteristics. Stock research is conducted by a large and well-resourced team based in Edinburgh, London, Sydney and Singapore. Investment ideas are primarily sourced from company visits, research trips, industry contacts and third party research and typically the team conduct over 1300 company meetings per year. Portfolio holdings typically have strong balance sheets, are cash generative, shareholder friendly and are able to grow their revenues and profits sustainably and predictably. The investment horizon is generally medium to long term and Gait avoids 'momentum' type stocks. The team uses its own proprietary research tools and prefers to meet management of businesses before and when it invests. In addition, the team benefits from the resources of First State’s parent company, Commonwealth Bank of Australia. Decision-making takes into account factors such as quality of research, team decisions and views, and the managers own knowledge of the companies. Final stock decisions and portfolio construction are the responsibility of Gait.
|Fund data updated on||13/11/18|
|High yield bonds||0|
As at: 30/09/2018
6.2% Tata Consultancy Services
5.5% Unicharm Corp
5.2% Csl Limited (Aud)
4.9% Mahindra & Mahindra
4.5% Tech Mahindra
4.3% President Chain Store Corp
3.8% Ck Hutchison Hldgs Ltd
3.6% Oversea-Chinese Banking Corp
3.1% Delta Electronics Inc
2.9% Hong Kong & China Gas Co
|Cash & Cash Equivalents||14%|
Typically 30-60 stocks.
Portfolio is relatively unconstrained with CIO limits of a maximum of 30% in any sector. Some limits also apply to country weights. Max 10% in companies under US$1bn market value.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.
|Average monthly relative returns||Bestinvest MRI|
|13/14||14/15||15/16||16/17||17/18||3 years||5 years||Career||3 years||5 years||Career|
|Performance figures are based on the average of monthly percentage returns relative to the benchmark index.|
Gait is a senior portfolio manager with First State’s Global Emerging Markets/Asia Pacific (ex-Japan) team having joined the company in 1997. In early 1999, he joined the Asia Pacific (ex-Japan) desk as an analyst, covering Korea, Taiwan and the Indian subcontinent. After a period of subsequent research focusing on China, South-East Asia and non-Asian emerging markets, he now covers all Asian-ex Japan and Emerging Markets, with a specific emphasis on sustainable investment within these asset classes. Gait holds an MA with honours in Economics from Cambridge University, and an MSc in Investment Analysis from Stirling University. He is an Associate member of the UK Society of Investment Professionals.
David Gait has 12.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.34%. During the worst period of relative performance (from May 2016 - January 2018) there was a decline of 18% relative to the index. The worst absolute loss has been 30%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is more than 99%.
|Periods of worst performance|
|Absolute||-30% (December 2007 - October 2008)|
|Relative||-18% (May 2016 - January 2018)|
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.