About Asia Long-Term Unconstrained
The Martin Currie Asia Long-Term Unconstrained (ALTU) strategy seeks to capture Asian economic growth, through an unconstrained portfolio of 20-40 high quality stocks held for the long-term.
The strategy seeks to capture nominal Asia ex Japan GDP growth – not always reflected in stockmarket returns, by investing in businesses able to grow with the region. Making a long- term capital commitment to compound returns from high quality companies over time.
These businesses are identified by conducting extra due diligence through our accounting diagnostics process and an in-depth assessment of corporate governance.
We aim to invest in businesses that are able to grow with the region, but which more importantly can translate that growth into good returns for shareholders. Acquiring them on a reasonable valuation, based on an in-depth assessment of their long-term potential.
These opportunities are scarce and when we find one, we aim to make a long-term capital commitment – to minimise costs and maximise the positive effect of compounding high returns from good businesses.
The level of conviction in our portfolio is driven by the high hurdles we set, both in the quality of the franchise in which we invest and in finding this quality at a reasonable valuation.
We build unconstrained, concentrated portfolios diversified by country, sector and business maturity. We seek to avoid the permanent erosion of capital by undertaking thorough due diligence on companies including our accounting diagnostic analysis
| Portfolio characteristics | Asia Long-Term Unconstrained |
|---|---|
| Benchmark | Unconstrained |
| Performance objective | Capture regional nominal GDP growth |
| Market capitalisation | All-Cap |
| Forecast tracking error | N/A |
| Sector/country allocations | Unconstrained |
| Number of stocks | 20-30 |
| Maximum active stock weight | 10% or 10% of company ownership |
| Portfolio turnover | < 30% p.a. |
| Inception | July 2008 |
The characteristics shown are guidelines only and not hard limits.
A compelling prospect for investors
Asia's growth story in recent decades has been impressive and there are exciting prospects for the future.
Andrew Graham
Head of Asia Long-Term Unconstrained
Translating Asia's growth
We invest using a long only absolute-return approach, allied to a long-term investment horizon. This allows us to maximise the effect of compounding returns.
Andrew Graham
Head of Asia Long-Term Unconstrained
Investment team
The Asia team combines a range of experience gained from different industry backgrounds including portfolio management, accountancy and private equity. Their approach is collegiate and all members of the Asia team share the responsibility for idea generation, stock research and portfolio construction.
Andrew Graham
- Job title
- Head of Asia
- Experience
- 33 years
Paul Danes
- Job title
- Portfolio Manager
- Experience
- 26 years
Damian Taylor
- Job title
- Portfolio Manager
- Experience
- 20 years
Michael Millar
- Job title
- Portfolio Manager
- Experience
- 26 years
Tom Wills
- Job title
- Portfolio Manager
- Experience
- 7 years
Zhang Yu
- Job title
- Investment Analyst
- Experience
- 1 year
Strategy factsheet
Strategy composite, net of fees (US$)
| 31 March 2020 | Three months (%) | One year (%) | Three years (% p.a.) | Five years (% p.a.) | Since inception (% p.a.) |
|---|---|---|---|---|---|
| Asia Long-Term Unconstrained strategy | -19.3 | -15.1 | -0.8 | 0.4 | 6.5 |
| MSCI AC Asia ex Japan | -18.4 | -13.2 | 1.4 | 1.6 | 4.0 |
| Relative return | -1.1 | -2.2 | -2.1 | -1.2 | 2.3 |
Past performance is not a guide to future returns. Data calculated in US$ net of fees. The return may increase or decrease as a result of currency fluctuations.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie Asia Long-Term Unconstrained strategy composite (US$). Data is presented net of investment advisory fees, broker commissions, and all other expenses borne by investors. An annual fee rate of 0.75% has been used in the presentation of net performance data. This is our standard fee offering for a US$100 million mandate for this strategy. The figures provided include the re-investment of dividends. Relative calculation is geometric. Inception of the composite is 1 August 2008. This strategy is not constrained by a benchmark but we show it versus the MSCI AC Asia ex Japan for illustrative purposes only.
This performance record is a clear representation of the Martin Currie Asia Long-Term Unconstrained strategy performance over the periods shown. Performance information showing five years (or since inception) in complete 12-month periods is available upon request. This data is supplementary to the GIPS disclosures provided at the end of this document.
Largest positions
| Stock | Portfolio weight (%) |
|---|---|
| Alibaba | 9.3 |
| Tencent Holdings | 8.7 |
| Samsung Electronics | 7.5 |
| Taiwan Semiconductor | 6.1 |
| Guangdong Investment | 5.0 |
| AIA | 5.0 |
| Tata Consultancy Services | 4.6 |
| Ping An Insurance | 4.2 |
| HDFC Bank | 4.2 |
| Singapore Technologies Engineering | 4.0 |
Stock attribution
| Top five contributors Q1 2020 | Contribution to absolute return (%) |
|---|---|
| Tencent Holdings | 0.3 |
| Techtronic Industries | 0.0 |
| Dairy Farm | (0.1) |
| Venture | (0.1) |
| China Mobile | (0.2) |
| Bottom five contributors Q1 2020 | Contribution to absolute return (%) |
|---|---|
| HDFC Bank | (2.0) |
| Coway | (1.8) |
| Singapore Technologies Engineering | (1.4) |
| Hero MotoCorp | (1.4) |
| United Overseas Bank | (1.3) |
Past performance is not a guide to future returns.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie Asia Long-Term Unconstrained representative account.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.
Sector exposure
| Sector | Portfolio (%) | Index (%) |
|---|---|---|
| Information Technology | 22.4 | 18.6 |
| Financials | 18.6 | 21.6 |
| Consumer Discretionary | 17.8 | 15.5 |
| Communication Services | 12.1 | 13.1 |
| Industrials | 9.5 | 6.2 |
| Utilities | 8.6 | 3.0 |
| Consumer Staples | 3.8 | 5.4 |
| Healthcare | 2.8 | 3.7 |
| Cash | 4.5 | 0.0 |
Country exposure
| Country | Portfolio (%) | Index (%) |
|---|---|---|
| China | 42.2 | 44.8 |
| Korea | 14.0 | 13.0 |
| Singapore | 12.8 | 3.2 |
| India | 11.4 | 8.5 |
| Hong Kong | 7.4 | 9.8 |
| Taiwan | 6.1 | 13.5 |
| Thailand | 1.5 | 2.4 |
| Cash | 4.5 | 0.0 |
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie Asia Long-Term Unconstrained representative account. This strategy is not constrained by a benchmark but we show it versus the MSCI AC Asia ex Japan Index for illustrative purposes only.
Risk profile
| Three years | Five Years | Seven years | |
|---|---|---|---|
| Portfolio Volatility | 14.7 | 14.7 | 13.5 |
| Index Volatility | 16.8 | 16.9 | 15.3 |
| Sharpe Ratio - Portfolio | 0.0 | 0.3 | 0.4 |
| Sharpe Ratio - Index | 0.1 | 0.3 | 0.4 |
Past performance is not a guide to future returns.
Source: Martin Currie as at 31 March 2020. Data shown is for the Martin Currie Asia Long-Term Unconstrained representative account. This strategy is not constrained by a benchmark but we show it versus the MSCI AC Asia ex Japan Index for illustrative purposes only.
Sharpe ratio uses the 7 day LIBID as a risk-free rate. Portfolio volatility is the annualised standard deviation of the portfolio returns. Index volatility is the annualised standard deviation of the index returns.
We take a genuinely long-term view on every investee companies development prospects.
How to invest
We offer investors access to our strategies through a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
How to invest
Martin Currie is an independently managed investment affiliate of Legg Mason, one of the world’s largest asset management firms.
Legg Mason is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Legg Mason website.
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