Investments  

Product review: BlackRock Asia fund

The BlackRock Asia fund is aimed at helping investors to capitalise on diverse opportunities created by the region’s changing geographical and investment landscape.

Managed by Andrew Swan, head of the group’s Asian Fundamental Equities team, it is a mirror of the offshore BGF Asian Dragon fund which has seen net returns of 36 per cent against its benchmark.

The fund is set to invest over the medium to long term, typically holding between 50 and 80 shares. It will be flexible with stock market capitalisation, investing across small-, mid- and large-caps.

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It will have a minimum initial investment is £500, with each additional minimum purchase of £100. It will have an initial fee of 5 per cent, and annual management fee of 1.5 per cent.

www.blackrock.co.uk

Comment

Europe’s economic condition over the past few years has forced investors to think outside of their comfort zones. BlackRock’s newest addition to its range shows there is demand from investors to access markets abroad and not just stick to the UK and Europe.

Benchmarked against the MSCI AC Asia ex Japan (Net) GBP, the fund will sit in the IMA Asia ex Japan sector, which stipulates a fund can have up to 5 per cent exposure to Japan.

A low minimum investment compared with some funds means the fund is very accessible to investors looking to add exposure to the region.

The fund it is mirroring, the BGF Asian Dragon fund, gives an idea of asset allocation. Its highest sector weighting, 25.9 per cent, is currently in technology.

Geographically, it holds 54.8 per cent in emerging Asia stocks and 41.1 per cent in developed Asia. Investors can therefore gain access to both up and coming companies as well as established firms. The fund may be suited to investors who want access to growing companies in the region, such as Korea’s Samsung,

There are an increasing amount of opportunities in Asia other than China, India and Korea. Demographics and economic growth are just two reasons why investors could be excited about a new way to access the continent.