Liontrust GF Asia Income Fund

May 2020 portfolio changes

  • Sold – King Yuan Electronics. The recent revival of US measures against China has included a tightening of restrictions on technology sales to Huawei and its 100+ overseas affiliates. We exited the position in Taiwanese testing company King Yuan as it derives around a fifth of revenues from HiSilicon, an affiliate captured by the new restrictions.

     

  • Bought – CNOOC. Proceeds were reinvested in Chinese oil exploration and development company CNOOC. It has a strong balance sheet, with net cash, and we think it will benefit from a better demand-supply balance in the oil market from Q3 this year. Its management is guiding towards 5% annual production growth through to 2022. Its share valuation is supported by a solid 4.5% dividend yield.

 

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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, June 5, 2020, 3:35 PM