Asia FVMR

Our Asia investment universe consists of non-financial companies listed in Hong Kong (including China H-shares), Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, and Thailand.

History

The five-year backtesting period shows the ASIR Asia FVMR Model portfolio generated an average annual return of 14.5% versus the ASIR Benchmark’s 7.0%. Our backtesting benchmark equally weights the largest and most liquid non-financial companies listed anywhere on those eight different Asian stock exchanges. On average the universe has consisted of 450 companies each year over the past ten years.

We started to publish our ASIR Asia FVMR Model portfolio on April 21st, 2014. For easier comparison between the published ASIR Asia FVMR Model portfolio and the Fund, the starting date in the charts and table below shows the same as the Fund inception date, July 18th, 2016, and the return is as of January 9th, 2018.

Since the Fund inception date, the Asia model portfolio has returned 36.4% p.a. versus the prospectus Asia ex-Japan, India, and Financials benchmark at 26.6% p.a.

The FVMR Asia strategy is used in the Fortress Capital Select Asia Fund (FFSAF) by Fortress Capital Asset Management (M) Sdn Bhd. The Fund has returned 23.1% versus the Benchmark’s 26.6%. Despite a relatively low management fee, the fees and costs for FFSAF in the first year have been a very high 7% due to a low level of initial assets under management.

Examples of previously held positions 

068270 KQ
Celltrion Inc.

Attractive because:

Solid long-term sales growth, strong sales momentum, and high earnings quality relative to its sector.

Company Background:

Celltrion Incorporated is one of Korea's biggest exporters by value of bio-similar pharmaceutical products (a bio-similar is a cheaper version of a biopharmaceutical, a type of drug which is derived from biological rather than chemical sources). The group has two plants and markets its two products to more than 120 countries.

1128 HK
Wynn Macau Ltd.

Attractive because:

Earnings on an upcycle trend, sales on an upcycle trend, and share price is less volatile relative to its sector.

Company Background:

Wynn Macau Limited is ranked as the second-largest gaming company in Macau by casino revenue, and no. 1 in terms of exposure to VIPs. The company operates two casinos, Wynn Peninsula and Wynn Palace, in Macau. The resorts are well-known for their luxurious design, which attracts high-rollers.

VMS SP
Venture Corp. Ltd.

Attractive because:

Earnings on an upcycle trend, sales on an upcycle trend, and share price is less volatile relative to its sector.

Company Background:

Venture Corporation Limited is a leading global provider of technology services, products and solutions based in Singapore. It consists of a network of more than 30 companies across the globe. Its main manufacturing plants are in Singapore, Malaysia, and China, and its design and pilot production capacity is in the United States.

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