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KFHASIA-A Update: Keep a closer eye on the return of Asia’s stock markets

Investment views and market overview
The Asian market gained momentum from the Chinese stock market that recovered after the relaxed Zero-Covid policy. Consequently, economic activities were expected to rebound. Recently, China's relaxed measure of outbound travel would positively impact the Asian market. Moreover, inflation in Asia is likely to decelerate, which may result in a slower increase in policy interest. KFHASIA-A is thus recommended fund, which has primarily invested in Asia’s leading stocks.

Outstanding features of KFHASIA-A
KFHASIA-A invests in the master fund, Baillie Gifford Pacific Fund that has outstanding features as follows:

Fund managers have long-standing expertise and experience in Asia’s ex-Japan stock market and fundamentals from various business and industry sectors. They also have a comprehensive access to external source of information.
Focus on Active Management through long-term investment horizon with consistent focus on growing companies because the Fund believes that long-term attractive returns are mainly driven by solid fundamental factors.
Portfolio was able to survive a series of crisis for 30 years, proving the efficiency of management that can generate higher returns than benchmark in the long run.

Source: StatPro, MSCI, Baillie Gifford & Co as of 31 Dec. 2022 | This shows the performance of the master fund, so it is not complied to AIMC’s standard. | Fund’s inception date: 31 Dec. 1989 | Rebased to 100. US dollars. Net of fees. | *Index: MSCI AC Far East ex Japan until 31 Jan. 2011

Investment strategies
The master fund will focus to invest in equities showing potentials for long-term growth by applying three crucial factors in screening process as follows:

1. Long-term horizon

Attractive companies tend to be the ones investing in R&D or business expansions that mostly take many years to see the outcome, while facing short-term volatility.

2. Outstanding growth potential, outperforming the market

Returns of Asia’s markets (ex-Japan) were driven by few companies. In the past ten year, there are only 8% of total companies that are market’s driver. (Source: Baillie Gifford & Co as of Jan. 2022).
Therefore, the fund has placed an importance in the right stocks with higher growth potentials than market, enhancing an opportunity to generate higher returns than market accordingly.

3. Developing a deep understanding of businesses

Deep understanding of macro economies’ overview and business models will help lead the portfolio to grow outstandingly in the long run.

Performance of the master fund

Source: StatePro, MSCI, Baillie Gifford & Co as of 31 Dec. 2022 | This shows the performance of the master fund, so it is not complied to AIMC’s standard. | *Index: MSCI AC Far East ex Japan until 31 Jan. 2011 | **Fund’s inception date: 31 Dec.1989 | Figures may not sum due to rounding. | Relative returns are the returns over each monthly time period for the Asia ex Japan composite (31/12/89 to 31/12/22) vs MSCI AC Asia ex Japan (MSCI AC Far East ex Japan prior to 31/01/11).

Fund details: KFHASIA-A

Remarks: All above mentioned fees include value-added tax or specific business tax or other taxes. | Except switching fees across investment units.

For more information of the fund, click here.

The information contained in this document is accurate at the time of publication but does not provide any warranty of its accuracy. Similarly, any opinions or estimates included herein constitute a judgment as of the time of publication. All information, opinions and estimates are subject to change without notice.
Please study fund features, performance, and risk before investing. Past performance is not an indicative of future performance.

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