Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

T Rowe Price launches Asian Opportunities fund

T Rowe Price launches Asian Opportunities fund

T Rowe Price has unveiled a second Asian equities fund to complement its existing product in the space.

The new Asian Opportunities Equity fund will be managed by Eric Moffett to focus on companies with highly predictable earnings, whereas the firm’s Asian ex-Japan Equity fund concentrates on those exhibiting earnings growth.

That £550 million fund, managed by Anh Lu and Ernest Yeung, has returned 120% over the past five years, top decile in its sector where the average fund has generated 78% through the same period.

Moffett has 13 years of investment experience, with six at T Rowe Price where he has been associate director of equity research for Asia ex-Japan. He will supported on the fund by a team of 14 equity analysts across the firm’s Hong Kong and Singapore offices.

The fund will build a portfolio of between 40 and 70 high-quality Asian stocks, with a mandate excluding Japan.

‘As Asia moves into a slower-growth environment, it is increasingly important that companies generate returns above their cost of capital,’ commented Moffett.

‘The quality of companies in Asia is gradually improving, as is their ability to effectively allocate capital. But many investors in Asian stocks are short-term focused. As they look for stocks that could double next month, they frequently overlook companies that can steadily compound over time. And that’s where we want to focus.’

Moffett concluded: 'It's true that Asian markets face near-term challenges as they grow and develop. Yet growth rates in the region are still high by global standards, and today many stocks across the region are already priced for a sharp slowdown.

'There’s often little differentiation between low-quality companies and the companies that can endure and take market share during difficult market environments.'

According to the fund’s key investor information document, it will have an ongoing charges ratio of 2.07%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter