Investing predominately in Asia ex-Japan, the KGI Pan Asia Taiwan Enterprises Fund has been a consistent performer since its launch in 2007.

While most of its portfolio comprises Asian equities, the fund can also invest a maximum of 10% of net assets in short ETFs and commodity ETFs. 

The investment strategy is mainly based on proprietary methods to analyze data and stock selection based on unique skill sets such as in-depth fundamental research. The Manager describes a fundamental-based investment philosophy emphasizing quality management, a robust business model, industry growth, and positive net cash flow.

The investment portfolio is relatively diversified with average security holdings of between 45-59, with one analyst monitoring 50+ securities, and actively traded with over 80% turnover in the past three years. 

While the performance has been excellent, the limited use of systems and tools as described opens up the possibility that the fund is overly reliant on the lead portfolio manager's expertise and may encounter “key man" risk.  There has been low turnover both amongst analysts and portfolio managers.  There are no stress testing policies in place and no plans for stress tests over the next twelve months. Engagement with investees/potential investees on average once a year can also be significantly improved. 

The fund has delivered a robust performance with net returns of more than 100-150 basis points above the benchmark on a 1Y, 3Y, 5Y, and 10Y period.

This fund has been reviewed by three industry veterans of the Benchmark judging committee.