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  • FIRST POST
    • Morus193
    • By Morus193 2nd Dec 17, 3:42 PM
    • 13Posts
    • 0Thanks
    Morus193
    Investing in Asia
    • #1
    • 2nd Dec 17, 3:42 PM
    Investing in Asia 2nd Dec 17 at 3:42 PM
    As someone who has almost zero experience in investing in Asia I would be greatful if someone could give me some advice. I am interested in having some investments in Asia as that is where I believe the biggest growth will come from in the future, what funds/companies are worth considering for investing? How would I purchase/invest with these companies? I would like to include countries like China, India, Vietnam, Japan, Korea, Thailand, Singapore. I don't mind having medium to high risk investments. I appreciate any suggestions, thanks.
Page 1
    • Linton
    • By Linton 2nd Dec 17, 3:52 PM
    • 8,603 Posts
    • 8,564 Thanks
    Linton
    • #2
    • 2nd Dec 17, 3:52 PM
    • #2
    • 2nd Dec 17, 3:52 PM
    There are plenty of funds that invest in companies in the Asia/Pacific region. Go to www.trustnet.co.uk, select the "Asia/Pacific excluding Japan" Sector and Search.

    You can buy the funds direct from the management company but it's better to have an account with one of the online brokers. If you arent aware of the mechanics of buying funds just ask - there is no point in people going into detail if you already know.
    • dividendhero
    • By dividendhero 2nd Dec 17, 4:55 PM
    • 114 Posts
    • 92 Thanks
    dividendhero
    • #3
    • 2nd Dec 17, 4:55 PM
    • #3
    • 2nd Dec 17, 4:55 PM
    I'm a great believer in Asia and hold funds in SOI,HEFL & AAIF

    As you might guess, i like my divis too
    • ArchBair
    • By ArchBair 2nd Dec 17, 5:05 PM
    • 52 Posts
    • 12 Thanks
    ArchBair
    • #4
    • 2nd Dec 17, 5:05 PM
    • #4
    • 2nd Dec 17, 5:05 PM
    I'm a great believer in Asia and hold funds in SOI,HEFL & AAIF

    As you might guess, i like my divis too
    Originally posted by dividendhero
    If you don't mind me asking but why three different IT's to cover Asia ex Japan?
    • wilko116
    • By wilko116 3rd Dec 17, 9:30 AM
    • 31 Posts
    • 4 Thanks
    wilko116
    • #5
    • 3rd Dec 17, 9:30 AM
    • #5
    • 3rd Dec 17, 9:30 AM
    How about Schroder Asia alpha plus fund. It has a good track record.
    • Voyager2002
    • By Voyager2002 3rd Dec 17, 10:17 AM
    • 11,717 Posts
    • 7,937 Thanks
    Voyager2002
    • #6
    • 3rd Dec 17, 10:17 AM
    • #6
    • 3rd Dec 17, 10:17 AM
    Do not make the mistake of thinking of "Asia" as being all the same. It consists of different regions with markets at differeng points of the economic cycle, and come to that at differing levels of economic maturity. So you need different approaches for the different regions. For example:

    Chinese markets seem in general to be over-valued. If I were to invest here I would want to be very careful about which companies I chose, and so would look for strong active management: no way would I put money in here using a tracker. Or perhaps you could consider the approach adopted by Aberdeen: they only invest in China via Hong Kong. This approach has cost them since they have missed out on gains in the short term, but may end up protecting them from even greater losses;
    Singapore: a tiny country but a mature and well-regulated market, the sort of place where using a tracker makes sense. Similar remarks apply to Australia.

    Decide how much exposure you want to the different regions in Asia, and choose your investment accordingly. Personally I prefer to use Investment Trusts since on the whole I want active management and I want the managers to be able to make long-term and potentially illiquid investments. I have for long held the India Fund (an IT traded in New York) and more recently bought the Schroder's Asia IT.
    • Prism
    • By Prism 3rd Dec 17, 10:18 AM
    • 53 Posts
    • 29 Thanks
    Prism
    • #7
    • 3rd Dec 17, 10:18 AM
    • #7
    • 3rd Dec 17, 10:18 AM
    Most of the funds you will find are tech and finance heavy. If you want to invest in Tencent, Samsung, Alibaba, TSM, AIA and China Pacific Insurance you have lots of choices. These are the funds that have been doing well in the short term. They tend to be China and Hong Kong focused

    If you want something more defensive then look at one of the Stuart Investors funds. These are more focused on the Asia consumer growth story and have not been as popular over the last few years. They have historically had the best long term performance. They have more of an India focus than China. Fundsmith FEET also falls into this category though has a short history
    • MonroeM
    • By MonroeM 3rd Dec 17, 2:20 PM
    • 115 Posts
    • 32 Thanks
    MonroeM
    • #8
    • 3rd Dec 17, 2:20 PM
    • #8
    • 3rd Dec 17, 2:20 PM
    If you don't mind me asking but why three different IT's to cover Asia ex Japan?
    Originally posted by ArchBair
    I think some people prefer to spread a particular region over a few different funds or IT's and the three mentioned to do have quite high yields. However, I personally just hold one IT for growth in this region which is the Schroder Asia Pacific (SDP) IT.
    Last edited by MonroeM; 03-12-2017 at 2:24 PM.
    • ArchBair
    • By ArchBair 3rd Dec 17, 3:36 PM
    • 52 Posts
    • 12 Thanks
    ArchBair
    • #9
    • 3rd Dec 17, 3:36 PM
    • #9
    • 3rd Dec 17, 3:36 PM
    I think some people prefer to spread a particular region over a few different funds or IT's and the three mentioned to do have quite high yields. However, I personally just hold one IT for growth in this region which is the Schroder Asia Pacific (SDP) IT.
    Originally posted by MonroeM
    I also only hold 1 IT for this region Fidelity Asian Values (FAS).
    • jimjames
    • By jimjames 3rd Dec 17, 6:11 PM
    • 12,234 Posts
    • 10,760 Thanks
    jimjames
    There's also the option of trackers which cover the region for very low cost
    Remember the saying: if it looks too good to be true it almost certainly is.
    • Voyager2002
    • By Voyager2002 3rd Dec 17, 7:19 PM
    • 11,717 Posts
    • 7,937 Thanks
    Voyager2002
    There's also the option of trackers which cover the region for very low cost
    Originally posted by jimjames
    IMHO not a good idea, above all for China.
    • bostonerimus
    • By bostonerimus 3rd Dec 17, 7:43 PM
    • 1,211 Posts
    • 668 Thanks
    bostonerimus
    How would this "asian portfolio" fit in with the rest of your investments? Will you be overweighting this region as you expect greater returns than from other regions?
    Misanthrope in search of similar for mutual loathing
    • jimjames
    • By jimjames 3rd Dec 17, 7:54 PM
    • 12,234 Posts
    • 10,760 Thanks
    jimjames
    IMHO not a good idea, above all for China.
    Originally posted by Voyager2002
    Most Pacific ex Japan have virtually/no China exposure but do have very heavy Australia exposure
    Remember the saying: if it looks too good to be true it almost certainly is.
    • MPN
    • By MPN 4th Dec 17, 10:52 AM
    • 238 Posts
    • 80 Thanks
    MPN
    I'm a great believer in Asia and hold funds in SOI,HEFL & AAIF

    As you might guess, i like my divis too
    Originally posted by dividendhero
    I also like Asia Pacific ex Japan and an IT is possibly the way forward, however I would have thought 1 IT or at the most 2 would be sufficient to cover this region?
    • StellaN
    • By StellaN 4th Dec 17, 5:18 PM
    • 190 Posts
    • 57 Thanks
    StellaN
    I am invested in Invesco Asia Trust and I'm pleased with the overall performance over a number of years.
    • dunstonh
    • By dunstonh 4th Dec 17, 6:04 PM
    • 89,841 Posts
    • 56,490 Thanks
    dunstonh
    Its worth noting that you may see more funds move out of the Asia Pacific sector in the future. Stewart Asia Pacific Leaders has moved out of the sector due to constraints within the sector classification. So, don't just limit yourself to that sector when looking for Asian funds.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Sue58
    • By Sue58 5th Dec 17, 2:11 PM
    • 90 Posts
    • 12 Thanks
    Sue58
    Its worth noting that you may see more funds move out of the Asia Pacific sector in the future. Stewart Asia Pacific Leaders has moved out of the sector due to constraints within the sector classification. So, don't just limit yourself to that sector when looking for Asian funds.
    Originally posted by dunstonh
    I noticed Stewart Asia Pacific Leaders had moved over to the IA Specialist sector. What types of constraints do you mean within the sector classification? Do these concerns also apply to IT's in this sector or just OEIC funds?
    • Sally57
    • By Sally57 6th Dec 17, 11:56 AM
    • 88 Posts
    • 18 Thanks
    Sally57
    I'm a great believer in Asia and hold funds in SOI,HEFL & AAIF

    As you might guess, i like my divis too
    Originally posted by dividendhero
    I used to hold a couple of funds or IT's in most geographical regions, however, personally, in the end I didn't feel it made sense so in the main I now tend to stick to 1 fund or IT per geographical region.
    • Filo25
    • By Filo25 6th Dec 17, 2:44 PM
    • 1,194 Posts
    • 1,827 Thanks
    Filo25
    Old Mutual Asia Pacific has been a good performer for me as well, although I would guess most ASPAC funds should have been good performers !
    • dunstonh
    • By dunstonh 6th Dec 17, 2:52 PM
    • 89,841 Posts
    • 56,490 Thanks
    dunstonh
    I noticed Stewart Asia Pacific Leaders had moved over to the IA Specialist sector. What types of constraints do you mean within the sector classification? Do these concerns also apply to IT's in this sector or just OEIC funds?
    Originally posted by Sue58
    To be in a sector, you have to invest within the limits and terms imposed by that sector. If you wish to deviate outside of that, you have to leave that investment sector. So, in theory it could apply to any fund.

    From memory, I believe the issue was that the fund wanted to invest where the earnings were Asian based but the sector required the companies to be listed in Asia.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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