Jane Andrews has been managing Asian-focused funds since 1987. And since 1996, Andrews has been using her experience of changing regional trends to manage the Smith & Williamson Far Eastern Growth Trust.
The fund has a weighting of around 30% to Japan, with 25% in Hong Kong/China and 14% in Australia. Over the past eight months, she has reduced the fund’s investment in Japan, noting that “the strength of the yen continues to negatively impact on the global competitiveness of exporters”. As for winners, she expects Korean manufacturers to benefit as the won has not kept up with the yen. To take advantage, she has invested in major Korean players in the sector, such as electronics giant Samsung.
But Andrews isn’t writing off all Japanese exporters. As workers in China demand higher wages, many Chinese factories will turn to automation – an area in which Japan is a world leader. Indeed, one of the fund’s core holdings, Nabtesco, is a robotics company that has benefited from its increased exposure to China.
Andrews has also invested in a wide range of companies with exposure to another theme: rising living standards in Asia. One such firm is Bosideng, a jacket maker and men’s retailer in China. Another is Singapore Airport Terminal Services, a company that she expects to benefit from rising traffic volumes at one of southeast Asia’s most important traffic hubs.
To date, Andrews’ stock selection has seen the fund grow by 86.4% over five years, compared to a sector median of 79.6%.
Contact: 020-7131 8100.
Smith & Williamson Far Eastern top ten holdings
| Name of holding | % of assets |
|---|---|
| Noble Group | 1.9 |
| Softbank | 1.9 |
| China Taiping Insurance | 1.6 |
| Olam International | 1.6 |
| Samsung Engineering | 1.6 |
| Sumitomo Electric | 1.5 |
| Singapore Airport Terminal Svs | 1.5 |
| Nabtesco | 1.4 |
| Sembcomp Marine | 1.4 |
| Venezuela (Republic of) 9.25% BD 07/05/28 | 2.8 |