Translating Asia’s Growth
The Story of Asia Long-Term Unconstrained (ALTU)
Many investors have been attracted to Asia’s high levels of growth, only to find it difficult to translate into returns. Andrew Graham, Head of Asia, explores the different approach behind our Asia Long-Term Unconstrained (ALTU) strategy and why he believes it is an effective way of accessing the region’s long-term return potential.
“With new industries and capabilities continuing to emerge, Asia’s impressive growth story continues and it remains an attractive prospect for investors. It is not without its challenges, however, these can be mitigated by investing at reasonable valuations in a diversified portfolio of higher-return businesses, that are cash generative and have opportunities for continued growth, backed up by sound finances and a management team with a history of sensible capital deployment.
“This was the focus of our ALTU strategy when it was launched over 10 years ago and it remains our focus today. Effective execution of this approach has enabled us to meet our return aspirations and deliver attractive risk-adjusted returns for our clients.”
1. The concept
Asia's role as an economic powerhouse is well established, so why does the stock market have such a chequered track record when it comes to delivering investment returns that reflect this growth?
2. Validating the concept
Making the leap from theoretical proof of concept, to actual investment outcomes. What does this look like?
3. Capturing Future Growth
Over the first decade of its life, ALTU has demonstrated its effectiveness but what is the scope for the region – and the strategy – to thrive in the future?
- Asian markets can deliver spectacular
returns in the short term but have
often failed to reflect the region’s high
economic growth in the longer term.
- Since inception over 10 years ago, ALTU
has delivered returns commensurate with
Asian nominal GDP growth, by investing
in businesses that are able to grow with
the region and translate this growth into
- Our focus is high-return businesses,
but there are also underlying secular
dynamics which we believe underpin
the Asia growth opportunity, notably:
consumption, trade, innovation and
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Past performance is not a guide to future
* Source: Martin Currie and IMF World Economic Outlook to
30 April 2019.
Risk warnings – Investors should also be aware of the
following risk factors which may be applicable to the
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Investing in foreign markets introduces a risk where adverse
movements in currency exchange rates could result in a
decrease in the value of your investment.
Emerging markets or less developed countries may face
more political, economic or structural challenges than
developed countries. Accordingly, investment in emerging
markets is generally characterised by higher levels of risk
than investment in fully developed markets.
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