How we think
How we think
We are active investors. We focus on where we can make a real difference for our clients – to help them achieve their long-term investment goals.
Nov 20, 2020
We are often asked how the strategy compares with passive approaches. There have been a number of indices launched in the recent years, some of which aim to capture the quality approach to investing in Asia Pacific equities. Examining these indices, the MSCI AC Asia ex Japan Quality Index has the most consistent exposure to stocks we would define as quality1. Comparing the performance divergence between this systematic approach to quality in Asia and our fundamental approach reveals the importance of research and stock selection.
Asia Pacific Franchise has comfortably outperformed passive alternatives
Past performance is not a reliable indicator of future results, losses may be made.
Source: Morningstar, Ninety One, as at 31 October 2020, since beginning of manager tenure: 16 October 2017. Performance is net of fees (NAV based, including ongoing charges), net income reinvested where applicable, in GBP. The Fund is actively managed. Any index is shown for illustrative purposes only.
1 MSCI does not offer an AC Pacific ex-Japan Quality Index, meaning there is not a precise cross over in geographies (Australia is excluded). However the difference in performance between MSCI AC Asia ex-Japan and (MSCI AC Asia Pacific ex-Japan) is historically similar: YTD through October 31: 11.1 (7.8) ; 2019: 13.6 (14.6); 2018: -9.2 (-8.6); 2017: 29.4 (29.5); 2016: 25.9 (25.8). For professional investors and financial advisors only. Not for distribution to the public or within a country where distribution would be contrary to applicable law or regulations.
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.