Liontrust GF Asia Income Fund

August 2019 portfolio changes

  • Sold – Man Wah. The company – the world’s largest seller of recliners – has been hit hard by US-China trade tensions and the introduction of tariffs. As a result, its shares underperformed the market during the sell-off in the second half of 2018. Having recovered from its lows and outperformed the market year-to-date, we decided to close out the position in recognition of the risk of ongoing and heightened US-China hostilities.
  • Bought – Dali Foods. Chinese food and beverage company Dali has market leading positions in several categories such as baked goods, potato chips, beverages and energy drinks. The company has a strong sales network with more than 4,500 distributors covering both the urban and rural areas in China. It has a solid balance sheet, strong free cash flow and aims to pay out at least 50% of earnings as dividends. Dali Foods’ shares trade on a forward price/earnings ratio of 14, reasonable value given expectations of 10% earnings growth. Its dividend yield is over 3%.

For a comprehensive list of common financial words and terms, see our glossary here.


Key Risks

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. Investment in Funds managed by the Asia team involves foreign currencies and may be subject to fluctuations in value due to movements in exchange rates. The Fund’s expenses are charged to capital. This has the effect of increasing dividends while constraining capital appreciation. 

Disclaimer

The information and opinions provided should not be construed as advice for investment in any product or security mentioned, an offer to buy or sell units/shares of Funds mentioned, or a solicitation to purchase securities in any company or investment product. Always research your own investments and (if you are not a professional or a financial adviser) consult suitability with a regulated financial adviser before investing.

Friday, September 6, 2019, 11:47 AM