Unconstrained investment in Asian equities
Martin Currie Asia Unconstrained Trust PLC (LON:MACP) was launched in 1985 and in July 2014 adopted Martin Currie’s Asia Long-Term Unconstrained (ALTU) strategy, aiming to generate returns in line with Asia-Pacific ex-Japan GDP growth, which generally has not been fully reflected in the region’s equity market returns. Since ALTU’s inception in 2008, it has demonstrated lower volatility than the market, capturing most of the upside in rising markets, while outperforming in falling markets. MCP has a wider discount than the peer group, which provides scope for it to narrow; its current dividend yield of 2.4% is attractive versus non income-mandated peers.
Investment strategy: Asia Long-Term Unconstrained
MCP adopted the ALTU strategy in July 2014, aiming to generate total returns in line with rolling three-year Asia-Pacific ex-Japan nominal GDP growth. The investment process is rigorous, involving screens, detailed fundamental analysis, a corporate governance assessment and a forensic accounting review. Stocks are only selected if the team’s assessment of the company’s intrinsic value is at a significant discount to the current share price. The resulting high-conviction portfolio typically has 20-30 positions and is held for the long term; hence portfolio turnover is relatively low.
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