Resilient outcomes

Capturing the emergence of quality in Asia Pacific

Ninety One’s Asia Pacific Franchise strategy has recently passed its three-year anniversary, delivering attractive returns. But how much of this is due to its style bias and concentrated sector exposure? Charlie Dutton explains why careful stock selection built on our philosophy and process has helped produce differentiated returns.

Mar 5, 2021

6 minutes

Charlie Dutton
Ninety One’s Asia Pacific Franchise strategy has recently passed its three-year anniversary, delivering attractive returns. But how much of this is due to its style bias and concentrated sector exposure? Charlie Dutton explains why careful stock selection built on our philosophy and process has helped produce differentiated returns.

The fast view

  • Despite a clear style bias to quality, there is more to Asia Pacific Franchise’s track record than this bias and concentrated sector exposure to recent outperformers.
  • Stock picking has been a notable contributor to returns, thanks to the Strategy's investment philosophy and process to selecting those equities that drive performance.
  • Furthermore, quality stocks dominate the Asia Pacific benchmark by market cap but focusing on such narrow leadership means potentially missing out on other significant performers.
  • It is also important to not confuse growth with quality; some outperforming growth stocks – which may be excellent businesses – do not fit our investment philosophy.


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General risks

All investments carry the risk of capital loss. The value of investments, and any income generated from them, can fall as well as rise and will be affected by changes in interest rates, currency fluctuations, general market conditions and other political, social and economic developments, as well as by specific matters relating to the assets in which the investment strategy invests. If any currency differs from the investor’s home currency, returns may increase or decrease as a result of currency fluctuations. Past performance is not a reliable indicator of future results.

Authored by

Charlie Dutton
Portfolio Manager

Important information

All the information contained in this communication is believed to be reliable but may be inaccurate or incomplete. Any opinions stated are honestly held but are not guaranteed and should not be relied upon.
Any decision to invest in strategies described herein should be made after reviewing the offering document and conducting such investigation as an investor deems necessary and consulting its own legal, accounting and tax advisors in order to make an independent determination of suitability and consequences of such an investment. This material does not purport to be a complete summary of all the risks associated with this Strategy. A description of risks associated with this Strategy can be found in the offering or other disclosure document for the Strategy. Issued by Ninety One.