Asian ETFs

Evidence Based Investing

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Portfolio Characteristics

Inception Date – September 2014
Currency – USD
Dividend Yield – 2.14%
Daily Liquidity

Investment Approach

Evidence Based Investing is our core investment philosophy, which means that rather than relying on short-term forecasting, we draw information about expected returns from the market itself. Letting markets do what they do best, drive information into prices, frees us up to spend time where we believe we have an advantage, namely in how we interpret the research and how we design and manage portfolios. It means we take a more systematic approach to investing, an approach we can implement consistently, and investors can understand and stick with, even in challenging market environments.

Rigorous, unbiased research has yielded six expected return premia for patient investors, which are equity premium, small cap premium, value premium, profitability premium, term premium and credit premium. We then select the most suitable securities to create the desired market exposure in the most cost and tax efficient way to capture these premiums.

We manage investment risks by using the combined powers of diversification and asset allocation. Diversification is a way to dampen risks. While some risks can be diversified away, market risk however remains and is expected to enhance your long-term returns if you build them into your total portfolio, and if you stay the course with them over time.

Asset allocation is determined by the investor’s specific goals and times frames and guided by his or her risk tolerance and capacity.

Strategy Description

The portfolio uses a selection of tax efficient ETFs and market trackers to create exposure to equity markets in the Asia-Pacific region, including Japan, Australia and India. The portfolio will invest in both developed and emerging countries within the region. Asian equity markets have grown extensively since the early 1990s, spurred by large foreign investor inflows, increasing financial integration, capital account liberalization, and market structure transformation. Economic growth is booming as rising wealth from high employment levels and wage growth have led to greater consumer spending. The region is embracing the global shift towards technology and, newer areas of the economy such as aviation and e-commerce continue to present major contributions to growth. Current valuations in Asia are compelling when compared to their U.S. counterparts. The region will undoubtably remain affected by ongoing geopolitical tensions but the long-term investment opportunity is undeniable. The portfolio aims to provide a tactical concentrated exposure to the region to complement a core investment strategy.

Portfolio Performance

YTD 2020 2019 2018 2017 2016 2015
Portfolio1.80%19.54%20.64%-15.15%32.91%5.45%-10.00%
as of 29/01/2021

Annualised Return

Standard Deviation

Sharpe Ratio

Portfolio7.04%14.17%0.50%

Allocation

Japan 36.90%

Emerging Asia 41.76%

Developed Asia 13.99%

Australasia 6.86%

Greater Europe 0.37%

North America 0.12%

Sector

Financials

14.26%

Industrials

12.71%

Consumer Discretinoary

16.43%

Real Estate

3.20%

Consumer Staples

6.45%

Materials

6.02%

Healthcare

8.92%

Utilities

1.51%

Technology

18.20%

Energy

1.88%

Telecommunication

10.43%

Sector

Financials

14.26%

Industrials

12.71%

Consumer Discretinoary

16.43%

Real Estate

3.20%

Consumer Staples

6.45%

Materials

6.02%

Healthcare

8.92%

Utilities

1.51%

Technology

18.20%

Energy

1.88%

Telecommunication

10.43%

Sector

Investment Grade

null

High Yield

0.00%

Other

0.00%

Financials

14.26%

Industrials

12.71%

Consumer Discretionary

16.43%

Real Estate

3.20%

Consumer Staples

6.45%

Materials

6.02%

Healthcare

8.92%

Utilites

1.51%

Technology

18.20%

Energy

1.88%

Communication

10.43%

Sector

Diversified Reits

null

Office Reits

0.00%

Retail Reits

0.00%

Hotel & Resort Reits

0.00%

Industrial Reits

0.00%

Financials

14.26%

Industrials

12.71%

Consumer Discretionary

16.43%

Real Estate

3.20%

Consumer Staples

6.45%

Materials

6.02%

Healthcare

8.92%

Utilites

1.51%

Technology

18.20%

Energy

1.88%

Communication

10.43%

Top Holdings

StockWeight

iShares Core TOPIX ETF36.92%

iShares MSCI Emerging Asia ETF32.69%

iShares Asia Trust - iShares Core Hang Seng Index ETF4.20%

Vanguard Total China Index ETF11.31%

Premia CSI Caixin China New Economy ETF5.28%

UBS ETF - MSCI Singapore UCITS ETF2.37%

Vanguard Australian Shares Index ETF7.24%

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