The fund aims to generate capital growth by investing in companies operating in Asia, with a specific focus on the ‘demographic growth markets’. In addition, it targets above average earnings growth and ROE for its invested companies versus local markets and Asia more broadly.
The starting point for the fund is an exclusive focus on the ‘demographic growth markets’ in Asia, namely those with large, young and growing populations. Over the next 2 decades these countries are expected to benefit from their demographic dividend, leading to GDP growth rates roughly double that of the more mature countries in Asia, and providing a fertile backdrop for well-run companies to compound their earnings over the long term. We believe this backdrop creates a significant, single generation opportunity for investment. The fund then combines the firm’s thematic approach with stock picking that favours market leaders with a clear, identifiable competitive edge, which will help our invested companies sustain above average earnings growth and ROEs over the long term.