Fund of the week: the year's best performer in Asia

Not so long ago, many investors argued that Asia had 'decoupled' from the West. But having fallen 42% over the past year, the MSCI Asia ex-Japan index suggests otherwise. Asian economies, according to the markets at least, are no better shield against global recession than their British or American counterparts.

The First State Asia Pacific Leaders Fund, however, may be an exception. It's lost just 10.3% since April 2008, making it the best-performing Asia Pacific ex-Japan fund over one year, of the 67 tracked by Trustnet.com. It has steered clear of cyclical stocks and most banks, says the fund's manager Angus Tulloch.

Instead, it's focused on consumer-related stocks with strong brands because "they have had some immunity to the global economic downturn", he tells The Daily Telegraph. Take Swire Pacific, best described as Hong Kong's answer to Virgin. It has its thumb in several pies, including beverages and property. Another top consumer holding is Chunghwa Telecom, Taiwan's most profitable telecom carrier, according to Jim Trippon in The China Stock Digest.

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"We've also retained a very significant exposure to gold, as we think there is a real risk of competitive currency devaluations throughout the world," adds Tulloch, an ex-accountant who bought his first shares aged ten, then sold them at 13 to fund a holiday, according to Citywire.

Up 108% over five years, the fund is high risk, says Darius McDermott of Chelsea Financial Services in The Independent, but it's "probably the best Asian fund available" in the UK. Tulloch's team has a great long-term track record. "They've done well in down and in up years."

Contact: 020-7332 6500.

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First State Asia Pacific Leaders Fund top ten holdings