Fund of the week: A good time to get into Asia
Emerging-market investors should snap up this successful Asian-focused fund, trading at a hefty discount.
Emerging markets have had a tough year, amid fears the US Federal Reserve may stop printing quite as much money. It's also been a year of upheaval for the Asian Total Return Investment Company (LSE: ATR).
Previously the Henderson Asian Growth Investment Trust, in March its board switched managers to Schroders, due to poor performance.
While new co-managers Robin Parbrook and King Fuei Lee have not had long to prove themselves yet, the offshore fund run by the pair Schroder ISF Asian Total Return has beaten its benchmark (the MSCI Asia Pacific ex Japan index) "by a considerable margin" over three and five years, notes Leonora Walters in the Investors Chronicle, as well as its peer average in "every calendar year since its inception in 2007".
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Parbrook and Fuei Lee are firmly at the investing coalface, respectively based in Hong Kong and Singapore. The trust aims to deliver a high rate of total return (so including both income and capital gains) through investing in stocks in the Asia Pacific region (excluding Japan). The annual management charge is 0.9%.
Before the switch to Schroders, the trust traded at a discount to net asset value (in other words, the share price was below the value of the underlying assets), notes Walters.
However, after the change, the discount narrowed markedly and the trust even traded at a premium briefly. It now trades at a 2.7% discount, which looks a good entry point for anyone looking for long-term exposure to Asian equities, reckons Walters.
Jardine Strategic Holdings | 4.20% |
AIA Group | 3.70% |
Jardine Matheson Holdings | 3.50% |
Hyundai Motor Company | 3.50% |
Taiwan Semiconductor Manuf. | 3.30% |
HSBC Holdings | 3.20%% |
Sun Hung Kai Properties | 3.10% |
Brambles | 3.10% |
Hong Kong Land Holdings | 3.10% |
Kasikornbank | 2.6% |
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
DIY pension investors take tax-free cash amid switch to ISAs
Self-invested personal pension (SIPP) investors are rushing to withdraw their tax-free cash and turning to ISAs amid fears of a pension tax raid in the Autumn Budget
-
12 ways pensions could be reformed in Budget – including an alternative to charging IHT
Pension savers could face new rules after the Budget if chancellor Rachel Reeves targets their pots to fill her own fiscal black hole – what potential pension changes could be on the way?