Terms & Conditions. Hide

ABOUT LIONTRUST

The Asia Process

INVESTMENT PHILOSOPHY

  • The Asia Income Fund aims to return more than 1.1 times the yield of the Asia Pacific ex Japan markets. 
  • Individual stock selection will be biased towards companies that tend to have a higher than average prospective yield backed by strong cash flows.

Any single investment style is unlikely to deliver consistent outperformance when investing in Asian equities. This is because the region is subject to business and economic cycles despite attempts to dampen them by both governments and central banks. Returns generated by different asset classes and styles of equity investment substantially differ through the business cycle. 

The secret to successful investing in Asia, therefore, is to choose the style of investment to suit the particular point in the cycle. In contrast, using a single framework of analysis will lead to significant periods of underperformance.

This flexible and pragmatic approach allows us sufficient freedom to seek to maximise returns from Asian equity markets throughout the cycle.

INVESTMENT PROCESS

There are four main stages to our process:  

  1. Identifying the key drivers for Asian equities;
  2. Incorporating these into a framework to determine the likely beneficiaries and losers of these drivers and to identify appropriate valuation methods;
  3. Fundamental stock analysis to identify individual companies that will benefit the most from the drivers;
  4. Portfolio construction.

The process is iterative, in that the information gleaned from management and corporate analysis is as important to the framework as it is to the final stock selection. Portfolio construction is undertaken to reflect all of the aspects of the process, populating the portfolio with the most attractive stocks while diversifying as much risk as possible through a range of drivers and stocks.