Sunday, January 9, 2011

Which Asian Trust?

What with all the fuss over Asia as the place to invest, I thought I'd try to pick out the best of the batch that could be purchased through TD Waterhouse. I used the screening supplied by the FT ( BestInvest seemed like quite a good source of info, too.

The FT returned 19 results for Asia Pacific including Japan. Here are some of the best-rated ones:

                                  L  B  M  S
1 Aberdeen Asia Pacific & Japan   5  5  5  -
2 First State Asia Pacific        5  2  -  -
3 Invesco Perpetual Pacific       5  3  5  AA
4 St james Place UT Far East      5  -  5  -
The columns on the right represent the ratings by various agencies:
L Lipper
B BestInvest
M MorningStar

Trusts 2 and 4 are not avaialbe through TD Waterhouse, so the story ends there for them. Taking a look at the remaining trusts:

1 (Aberdeen) It is a large-cap blend (i.e. value and growth) fund. It invests in Australia, too. Per BestInvest: "strong balance sheets. bottom up approach is the main driver of country and sector weightings. This fund structure is not benchmark driven"

3 (Invesco): It is a large-cap value fund. It is aimed at captial growth, and includes Australasia and Japan. It initially focuses on macro trends.

Q: Which one would I choose?
A: The Aberdeen one - because I like the bottom-up non-benchmark style rather than macro trends.

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