Pacific Assets Trust backed by the expertise of First State

The fund's aim is generate long-term capital growth for investors by tapping into selected companies in the Asia Pacific region and the Indian sub-continent but excluding Japan, Australia and New Zealand. It is relatively concentrated, with a portfolio of 55 holdings although these are well diversified on a geographical basis. The board of the trust has set a current limit for single investments of 7.5 per cent of total assets at the time of investment.

The fund has consistently outpaced its benchmark, the MSCI All Country Asia ex Japan index although it slightly lags its peer group over the longer term, meaning three and five years. It is currently trading on an attractive discount of 8.62 per cent, which could signal a good entry point for investors.

Currently the fund is defensively positioned and sees the best value in companies with pricing power, strong sustainable cash flows and growing dividend yields as it expects markets to remain volatile given the precarious balancing act facing policymakers in both the West and East.

Recent additions to the portfolio include Global Logistics Properties, a logistics and property company that is building a strong franchise in China. The fund sold its position in ASM Pacific Technology because of its punchy valuations.

The fund has a limit on gearing, net of cash, of 20 per cent of shareholders' funds at the time of borrowing.

Source: Investors Chronicle funds data, First State

Performance figures as at 23 January 2012

Top 10 holdings (as at 31 December 2011)

Geographical Breakdown