Lee King Fuei (First AAA)
Lee King Fuei, manager of the Schroder Institutional Pacific I Inc and the Schroder ISF Asian Equity Yield GBP A Dis funds has moved up one notch in the ratings and is now AAA rated, his first. He has handsome returns of 55.06% and 61.29% respectively over the past three years.
Fuei has managed the Schroder ISF Asian Equity Yield fund since its inception in June 2004. The GBP share class of the fund, Schroder ISF Asian Equity Yield GBP A Dis, was launched in Feb 2006 and it is this share class we track for the UK ratings analysis. His top holdings within the fund at the end of December included Jardine Strategic Holdings Limited (4.01%) and Jardine Matheson Holdings Ltd (3.45%).
The fund has a large weighting in financials with around 38% of the fund invested in the sector. Main country weightings were in include Hong Kong (24.9%), Australia (23.6%) and Singapore (11.9%) and invest in Asian companies which offer attractive yields and dividend payments which are sustainable as a result.
He typically underweights those sectors which are seen as low yielding such as materials, energy and technology, which leads to a bias towards higher yielding sectors such as utilities and telecoms. This strategy is paying off and there is strong downside protection in the fund, however, this is at the cost of upside potential.