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.
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
"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.
TABLE.ben-table TABLE {BORDER-BOTTOM: #2b1083 3px solid; BORDER-LEFT: #2b1083 3px solid; FONT: 0.92em/1.23em verdana, arial, sans-serif; BORDER-TOP: #2b1083 3px solid; BORDER-RIGHT: #2b1083 3px solid}TH {TEXT-ALIGN: center; BORDER-LEFT: #a6a6c9 1px solid; PADDING-BOTTOM: 10px; PADDING-LEFT: 5px; PADDING-RIGHT: 5px; BACKGROUND: #2b1083; COLOR: white; FONT-WEIGHT: bold; PADDING-TOP: 10px}TH.first {TEXT-ALIGN: left; BORDER-LEFT: 0px; PADDING-BOTTOM: 5px; PADDING-LEFT: 2px; PADDING-RIGHT: 2px; PADDING-TOP: 5px}TR {BACKGROUND: #fff}TR.alt {BACKGROUND: #f6f5f9}TD {TEXT-ALIGN: center; BORDER-LEFT: #a6a6c9 1px solid; PADDING-BOTTOM: 5px; PADDING-LEFT: 2px; PADDING-RIGHT: 2px; COLOR: #000; PADDING-TOP: 5px}TD.alt {BACKGROUND-COLOR: #f6f5f9}TD.bold {FONT-WEIGHT: bold}TD.first {TEXT-ALIGN: left; BORDER-LEFT: 0px}
First State Asia Pacific Leaders Fund top ten holdings
| Newcrest Mining | 10.0 |
| Hong Kong & China Gas Company | 5.8 |
| Taiwan Semiconductor Company | 5.7 |
| Swire Pacific | 4.8 |
| Brambles Ltd | 4.8 |
| Cheung Kong Holdings | 4.2 |
| Chunghwa Telecom | 3.6 |
| Oversea-ChineseBanking Corporation | 3.3 |
| Samsung Electronics Company | 3.2 |
| LIHIR Gold | 3.1 |
-
Buying a property is cheaper than renting again – how much could you save?News Zoopla research shows it is now 8% cheaper to buy than rent. We reveal the places where you can save more by getting on the property ladder.
-
Is now a good time to invest in India?Should you invest in India? Its market has stood out of the emerging market pack, helped by a growing pool of domestic investors.
