LF Canlife
Asia Pacific Fund

REASONS TO RECOMMEND

UNCONSTRAINED APPROACH
The fund typically invests in ten or more countries in the region with a unique approach for each market. The managers' have the freedom to invest wherever the opportunities lie without being tied to benchmark weightings or specific country allocations.

HIGH CONVICTION, ACTIVE MANAGEMENT
Asia is not a region where an investor can succeed by simply taking on passive exposure to all countries. Investing here requires in-depth knowledge of each country and their financial markets in order to unearth compelling investment opportunities.

BLENDED PERFORMANCE
The investment approach combines the benefits of taking a top-down, macroeconomic view of each economy as well as a bottom-up approach to stock selection in order to achieve the best positioning for prevailing market conditions.

FUND PERFORMANCE

Past performance is not a guide to future performance. The value of investments may fall as well as rise and investors may not get back the amount invested. Income from investments may fluctuate. Currency fluctuations can also affect performance. Performance figures are on a bid to bid with net income reinvested basis. Valuations are based on the previous day's prices.

HOW THE FUND IS MANAGED

Deep analysis of local policy and politics allows insight into local markets as the management team execute a top-down approach to investing paired with bottom-up stock-picking.

The ability to take an unconstrained approach to managing the portfolio means the managers are not tethered to the market so they can, and have, taken positions that deviate from the consensus.

The managers' follow three integrated steps that can be seen as the three ‘levers’ that drive portfolio construction. These consist of:

1. Top down country selection – Understanding the macroeconomic picture of the region and its constituent countries is essential for identifying the best places to invest. Analysing the politics, public policy and economic cycle of each country, as well as general sentiment, helps to form a view of which markets might provide the best opportunities.
2. Sector selection – Investing in the right themes and trends is also a major driver of fund performance. Macroeconomic trends, long-term demand drivers, the regulatory environment and other factors are analysed in order to make allocations in the Fund.
3. Stock selection – In addition to taking a top-down view, Mike and Bimal can make high-conviction bottom-up decisions when the conditions are right. Stocks are selected based on their earnings profile, valuation, management quality and corporate governance.

 

Depending on the stage of the economic cycle and market conditions, they will operate each lever individually or together so as to optimise portfolio returns. The fund’s nimble approach allows the managers to quickly build positions that add value to the fund whether through country allocation, sector selection or bottom-up stock selection.

SHARE CLASS INFORMATION

FUND MANAGEment team

IMPORTANT INFORMATION

Due to the underlying assets held, the price of the fund is classed as having above average to high volatility.