Buy and hold' is hardly the most sophisticated investment strategy. But it's proved a successful approach for Peter Hames and the team of analysts who manage the Aberdeen Asia Pacific and Japan fund. The fund has returned 97% over the past five years, against 83.7% for the FTSE Asia Pacific fund.
Based in Singapore since 1992, Hames looks "for good, well-run, easy-to-understand companies that have strong fundamentals and good long-term prospects, trading at sensible prices", he tells Investment Adviser. Hames aims to buy companies that are trading at a discount to their peers, using simple ratios, such as price to earnings. Turnover of stocks in the fund is also very low at 10%-20% a year. "Our view is very long term, with the portfolio hardly changing from day to day." That means that the fund does not incur high levels of broker fees for trading shares.
Underweight China, where he believed a bubble was fomenting for some time, he tends to go for Asian firms with a strong regional focus. For example, among his top ten holdings is Singapore Bank Oversea-Chinese Banking Corp, whichis expanding aggressively in Indonesia and Malaysia. He also likes Singapore Telekom, which focuses on the Australian and emerging Asian markets.
Subscribe to 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
And although the total expense ratio of 1.91% makes it look a bit pricey, "there's a lot to like here", says Tom Whitelaw on Morningstar. "This fund boasts a strong record, a sensible strategy, and a seasoned and disciplined management team. It's a strong choice for investors seeking diversified exposure to Asia."
Contact: 020-7463 6000
Aberdeen Asia Pacific and Japan top ten holdings
Name of holding, % of assets
Aberdeen Global India Opportunities, 4.40
Canon Inc, 3.10
Honda Motor Co, 3.00
Samsung Electronics Co, 3.00
Rio Tinto, 2.90
Oversea-Chinese Banking Corp, 2.90
QBE Insurance Group, 2.90
Taiwant Semiconductor Manufacturing, 2.60
Takeda Pharmaceutical Co, 2.60
Bank of Kyoto, 2.50
-
8 of the best houses for sale with annexesThe best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
-
Zelenskyy moves to appease Donald Trump – what happens now?Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
