Premium Asia (MAQ0635AU) Report & Performance

What is the Premium Asia fund?

Premium Asia Fund aims to generate positive returns, consisting of both capital growth and income, over a three to five-year period prior to accounting for movements in currency exchange rates. It will seek to achieve this objective by constructing a portfolio of securities which provides exposure to the Asia ex-Japan region. It is denominated in Australian dollars and typically will not hedge its currency exposure.

  • Managed by Value Partners using disciplined value-oriented approach supported by intensive, on-the-ground bottom-up fundamental research.
  • The Fund may also invest in cash and money market instruments, depositary receipts, listed unit trusts, shares in mutual fund corporations and other collective investment schemes (including real estate investment trusts), derivatives including both exchange-traded and over-the-counter (“OTC”), convertible securities, participatory notes, bonds, and foreign exchange contracts.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Premium Asia

Premium Asia Fund Commentary September 30, 2023

In September, the Fund recorded losses of 1.5% (in AUD), while the MSCI AC Asia ex Japan Index was down 2.3% (in AUD).

Despite the drag in the market, some of our stock picks yielded positively, supporting the Fund’s performance relative to the benchmark. These include some of our non-benchmark holdings of Chinese telecom operators and our overweight in select Chinese banks, as their businesses remained solid in spite of the ongoing concerns over the domestic economy. One of the largest oil companies in China also contributed to the Fund’s performance, as it continues to benefit from higher oil prices and is supported further by its efficient operating cost control measures. Our exposure to India also generated positive absolute returns during the month, including the contribution from a mobile tower installation company. The market continues to be resilient against global headwinds due to its strong macroeconomic trends and strengthened long-term growth profile.

On the other hand, the Fund’s gains were more than offset by our exposure to select regional technology names, such as some leading tech players in Taiwan and Korea. Nevertheless, we remain constructive about these holdings, which, in our view, should benefit from the growing investments in artificial intelligence (AI) over the long-term horizons. Our holdings of select internet names in China also detracted the Fund’s performance despite reporting resilient second-quarter results. These holdings are of high quality, and their business fundamentals are expected to remain resilient despite the ongoing drag in the economy.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Premium AsiaMAQ0635AUManaged FundsForeign EquityAsia Pacific w/o JapanForeign Equity - Asia ex Jap IndexWorld Emerging Markets Index39.45 M1.48%0.00%0.5%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Premium Asia11.45%8.82%19.59%1.45%10.11%14.95%16.11%13.61%-3.69%-28.98%-33.07%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Premium AsiaForeign Equity - Asia ex Jap Index3.48%2.19%NA%NA%NA%1.13.07%4.42%0.980.95

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Premium AsiaYes-https://www.premiumchinafunds.com.au/-

Product Due Diligence

What is Premium Asia

Premium Asia is an Managed Funds investment product that is benchmarked against World Emerging Markets Index and sits inside the Foreign Equity - Asia ex Jap Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Premium Asia has Assets Under Management of 39.45 M with a management fee of 1.48%, a performance fee of 0.00% and a buy/sell spread fee of 0.5%.

How has the investment product performed recently?

The recent investment performance of the investment product shows that the Premium Asia has returned 11.45% in the last month. The previous three years have returned 1.45% annualised and 13.61% each year since inception, which is when the Premium Asia first started.

How is risk measured in this investment product?

There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Premium Asia first started, the Sharpe ratio is NA with an annualised volatility of 13.61%. The maximum drawdown of the investment product in the last 12 months is -3.69% and -33.07% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.

What is the relative performance of the investment product?

Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Premium Asia has a 12-month excess return when compared to the Foreign Equity - Asia ex Jap Index of 3.48% and 2.19% since inception.

Does the investment product produce Alpha over its Peers?

Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Premium Asia has produced Alpha over the Foreign Equity - Asia ex Jap Index of NA% in the last 12 months and NA% since inception.

What are similar investment products?

For a full list of investment products in the Foreign Equity - Asia ex Jap Index category, you can click here for the Peer Investment Report.

What level of diversification will Premium Asia provide?

Premium Asia has a correlation coefficient of 0.95 and a beta of 1.1 when compared to the Foreign Equity - Asia ex Jap Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.

How do I compare the investment product with its peers?

For a full quantitative report on Premium Asia and its peer investments, you can click here for the Peer Investment Report.

How do I compare the Premium Asia with the World Emerging Markets Index?

For a full quantitative report on Premium Asia compared to the World Emerging Markets Index, you can click here.

Can I sort and compare the Premium Asia to do my own analysis?

To sort and compare the Premium Asia financial metrics, please refer to the table above.

Has the Premium Asia been independently verified by SMSF Mate?

This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.

How can I invest in Premium Asia?

If you or your self managed super fund would like to invest in the Premium Asia please contact via phone or via email .

How do I get in contact with the Premium Asia?

If you would like to get in contact with the Premium Asia manager, please call .

Comments from SMSF Mates

SMSF Mate does not receive commissions or kickbacks from the Premium Asia. All data and commentary for this fund is provided free of charge for our readers general information.

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Historical Performance Commentary

Performance Commentary - August 31, 2023

In August, the Fund was slightly down by 0.9% (in AUD), while the MSCI AC Asia ex Japan Index recorded losses of 2.6% (in AUD).1 Year-to-date, the Fund and the index were up 10.7% and 7.1%,1 respectively.

Our holdings of Chinese equities were among the main detractors to the Fund’s performance, given the general market weakness. Among them are industrial and insurance companies, which were dragged partly due to the subsided expectations on “SOE reforms”. Similarly, our holdings of select internet and consumer-related players also dragged the Fund’s performance. That said, our holdings in the China equity space are of high quality, and their business fundamentals are expected to remain resilient amid potential market volatility, especially given the slew of supportive measures released at the end of the month. In terms of sectors, industrials was the top detractor, which also included a South Korean construction company alongside Chinese names.

On the positive side, some of our bottom-up stock picks supported the Fund’s performance. Two of our Chinese holdings, particularly a telecom operator and a leading e-commerce player, were among the top contributors of the Fund, with both of them releasing solid second-quarter results. In addition, some of our holdings of technology-related companies in Taiwan’s IT and industrial sectors also yielded positively as they continue to benefit from the expected cyclical recovery ahead, supported by the growing demand for high-performance computing and artificial intelligence (AI)-related hardware demand. Elsewhere, our exposure to Indonesia and India also supported the Fund’s performance.

Performance Commentary - July 31, 2023

In July, the Fund and the MSCI AC Asia ex Japan Index both performed 4.8% (in AUD). Year-to-date, the Fund recorded gains of 11.6%, while the index was up 10.0%. The positive contributors during the month were broad-based across geographies and sectors. Our holdings of Chinese equities were among the top contributors to the Fund’s performance. In particular, our holdings of internet names were boosted by the supportive policy stance from the central government toward private enterprises and platform companies. Outside of China, a leading Korean construction and project management company was also a top performer, supported by its strong first-half results. On the flip side, our holdings of two regional technology companies, one in Korea and another in Taiwan, dragged the Fund’s performance, as investors took profit following the sector’s strong performance in recent months. Nevertheless, we remain constructive about the sector and continue to be optimistic about our select holdings, which should benefit from the growing investments in artificial intelligence (AI).

Performance Commentary - June 30, 2023

In June, the Fund was flat at -0.2% (in AUD), in line with the MSCI AC Asia ex Japan Index’s – 0.1% (in AUD) performance. Year-to-date, the Fund was up 6.6%, outperforming the index’s 5.0% performance.

During the month, our exposure to various Chinese SOEs across different sectors dragged the Fund’s performance as expectations of SOE reforms weakened. In particular, our off-benchmark position in a telecommunications operator was the top detractor to the Fund’s performance. That said, we remain positive about the company’s growth prospects, supported by the continued adoption of 5G in the country. Our exposure to financials, including those in China and South Korea, also dragged the Fund’s performance. The optimism toward Korean financial stocks, in particular, is losing steam, given expectations of diminishing interest profit growth as the country’s rate hike cycle appears to have come to an end.

On the positive side, our exposure to a leading skincare brand in Korea was among the top contributors to the Fund’s performance, driven by its successful IPO. Our select internet holdings in China also performed well, as they are expected to maintain revenue growth ahead despite the short-term bumpiness of the economy. Our holdings of technology names in Taiwan also yielded positively, given the sustained optimism toward the electronic sector, while our exposure to India also supported the Fund’s performance as the country continued to be supported by favorable economic prospects.

Performance Commentary - March 31, 2023

In March, the Fund was up 4.6% (in AUD), while the MSCI AC Asia ex Japan Index returned 4.2% (in AUD).1 In the first quarter of the year, the Fund was up 10.5% (in AUD), almost 500 basis points above the MSCI AC Asia ex Japan Index (which was up 5.6% in AUD).1

During the month, our exposure to regional technology names was among the top contributors to the Fund’s performance, as they were boosted by expectations of an improved sector outlook by the second half of the year. Our exposure to Chinese telecommunications was also boosted by expectations of further SOE reforms and the rapid development of industrial digitalization. Moreover, some Chinese internet names yielded positively on the back of the country’s macro recovery and the supportive policy stance toward private enterprises.

On the other hand, our exposure to certain financial companies dragged, given the weakened sentiment caused by the SVB and Credit Suisse incidents. However, we believe the impact of the recent events on the banking sector in Asia is rather limited. Other key detractors include a major e-commerce player in China, which reported weaker-than-expected results. Meanwhile, some A-share companies have seen their share prices ease, dragging the portfolio’s return.

Performance Commentary - February 28, 2023

Asia equities dragged in February amid the stronger US dollar and renewed fears that the US might tighten more than expected. In February, the Fund and the MSCI AC Asia ex Japan Index performed -1.4% (in AUD) and -2.6% (in AUD), respectively. Our exposure to Chinese e-commerce and consumer names and a regional technology company were among the key draggers of the Fund’s performance during the month. We believe their share price corrections merely reflected the changed investor sentiment and were not driven by any significant fundamental deterioration.

On the other hand, some of our portfolio holdings yielded positively despite the market correction. They include our exposure to Chinese telecommunications names and a Taiwanese company providing testing and certification services. In particular, the Chinese telecom operators were boosted by expectations of further SOE reforms to bolster their shareholders’ returns and faster adoption of cloud infrastructure services.

Performance Commentary - December 31, 2022

In December, the Fund and the MSCI Asia ex Japan Index performed -0.4% (in AUD) and -1.4% (in AUD), respectively.

Our portfolio holdings in Hong Kong and China have continued to do well. The top performers coming from these markets during the month include various names from the internet, consumer, and finance sectors. They are expected to benefit from the improved market and macro conditions.

However, the solid share price performances of these Chinese companies were offset by a less stunning performance elsewhere, notably in Taiwan and Korea. In particular, some of our technology holdings in these markets have declined amid rising concerns over the global consumer electronic downturn. Despite the near-term challenges, we continue to see solid long-term business competitiveness on the back of their strong strategic positioning, sound business profiles, and solid balance sheets. Moreover, as they are trading at trough or close-to-trough valuations, we see limited further downside in these companies and remain faithful that they are well-positioned toward long-term technology business growth.

Looking forward, we see a rather mixed outlook in Asia in 2023. While the China market is poised to see a strong recovery, the looming recession in the US and further rate hikes from the FED may create further volatility in the stock market. In particular, some better-performing markets in Asia last year could come under pressure this year, while others may selectively benefit from China’s reopening.

Overall, we continue to see a bumpy recovery in the Asian markets ahead, but we remain optimistic about China’s long-term market outlook. We stick with our bottom-up stock selection approach and, at the same time, pay close attention to macro developments, including export trends, currency movements, and geopolitical events.

Performance Commentary - November 30, 2022

In November, the Fund and the MSCI AC Asia ex-Japan Index were up 13.3% (in AUD) and 13.4% (in AUD),1 respectively.

The key contributors to our portfolio were relatively widespread across different sectors, especially in China, which include internet, consumer, and financial names. These primarily reflected the renewed investor enthusiasm amid the fine-tuning of anti-Covid policies in China, as well as the strong funding support for property developers. A leading regional semiconductor foundry was also among the top contributors to the Fund’s performance.

On the other hand, our Fund’s exposures in India and Indonesia have slightly dragged the Fund’s performance, given the modest performance in these markets.

Following a sharp rally in November 2022, we expect market volatility to persist in the near term, as investor sentiment remains jumpy on different macro data points and economic events. For China, one key event to watch in the near term is the central economic working conference that will likely take place in the next few weeks, as it could outline top policy directions. Overall, we remain optimistic about China’s long-term market outlook and believe it offers good long-term risk-reward opportunities, even after the recent rebound.

In the other parts of Asia, we continue to adopt a selective approach toward different trends and characteristics. Although other regional markets have significantly underperformed China in the recent month, we believe that selective allocation in some markets could help shape a more balanced portfolio with reduced volatility over the longer term.

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