Asia Pacific fund launch

Cavendish Asset Management launched an Asia Pacific equity fund on 15 June 2009. The fund will invest in a diversified portfolio of equities within the Asia Pacific region, excluding Japan but incorporating Australia.

The Asia Pacific fund is Cavendish's fourth geographically focused launch in the space of a month, and the fifth equity fund. It follows on the 15 May 2009 introduction of Cavendish's European, North American and Japan funds, as well as a fund focused on the technology sector.

The aim, according to Asia Pacific fund manager Liz Evans, is to achieve long term capital growth. "Obviously in the region high growth countries are China and India," said Evans. The fund will be overweight in Indian stocks, with plans to play the urbanisation story and growth of an aspirational middle class. As a result, Evans is looking at consumer and property stocks in India.

Evans visited China in May, where she found that the export side of the market was still looking particularly awful. Other leading indicators like property pre sales, however, showed signs of improvement. The fund will also invest in China's industrial sector now that this looks as though it has turned a corner, said Evans.

Outside China and India, the fund will be very specific about the stocks it invests in, choosing on a case by case basis. Evans sees good opportunities in Taiwan, while she believes other Asian markets are "a little quieter".

"Officially its a very soft launch to begin with," she said.

Cavendish levies a 5% preliminary charge in addition to a 1.5% AMC. Minimum investment is £2,500 for each fund.

MM View

Asia was hit particularly hard in 2008 with many markets down more than 50%. Many funds have fallen to levels not seen since the boom in the Asian markets, which means that valuations on some of these stocks are trading at comparatively cheap levels. If the BRIC markets are going to follow the same soaring trajectory that they did 10 years ago, Evans may have a point in thinking that Asia is the place to invest in the coming months.

lindsey.white@ft.com