WS Keyridge Asia Pacific Fund

Essential features of the Fund

• Style agnostic.

• Invests at least 80% of its assets in companies that are incorporated or domiciled in the Asia Pacific region, excluding Japan but including regional emerging markets.

• Can invest across industry sectors without limitation.

• The Fund may also invest in real estate investment trusts (REITs) and hold up to 20% of its assets by value in debt securities (such as corporate bonds, government and public securities), money market instruments, deposits and cash.

• Investment in collective investment schemes is limited to 10% of the Fund’s assets.

• The Fund may use derivatives for the purpose of efficient portfolio management.

• Up to 25% of the Fund’s holdings by value may be used to generate additional income from stock lending.

For further details on the objective and investment policy, visit the Literature section to view Fund KIIDs and Prospectus.

How the Fund is managed

• Top-down country selection

  Understanding the macroeconomic picture of the region and its constituent countries is essential for identifying the best places to invest. Analysing the politics, public policy and economic cycle of each country, as well as general sentiment, helps to form a view of which markets might provide the best opportunities.

• Fundamental analysis

  Specific holdings are determined through research that is undertaken by Keyridge’s equities team, including company visits and conferences. The choice spans a variety of industries, services and geographical locations, allowing the manager to gain targeted exposure.

• Sector selection

  Sector allocations are important to ensure balance and diversification. Typically, macro and market views are considered to balance the portfolio across factors such as growth, cyclicality and defensiveness. Additionally, the desired exposure to trends such as in bond yields and commodity prices are key considerations. This approach to portfolio construction aims to deliver a diversified source of return from both a capital and income perspective.

• Stock selection

  Typically across companies of all sizes, from large, well-knowns to smaller-scale operations. The stock selection process itself takes into account several factors. These include the company’s market position, quality of its brand and underlying assets, how it fits in with current market and economic trends, and the specific drivers behind earnings and dividend growth. The managers will also conduct a thorough analysis of a company’s strategy or management team.

Reasons to recommend

• Flexible approach

  The Fund typically invests in ten or more countries with a different approach for each market. The managers have the freedom to invest wherever the opportunities lie without being unduly tied to benchmark weightings or specific country allocations.

• Active management

  Asia is a highly diverse region where an investor may struggle to achieve the desired outcome by simply taking on passive exposure to all countries. We believe investing here requires good knowledge of each country and its financial markets in order to unearth compelling investment opportunities.

• Blended performance

  The investment approach combines the benefits of taking a top-down, macroeconomic view of each economy as well as a bottom-up approach to stock selection in order to achieve the best positioning for prevailing market conditions.