Investments  

Fund review: T. Rowe Price Asia Opps

American investment giant, T. Rowe Price has expanded its UK-based offerings by launching an Asia Opportunities fund.

The new launch is set to complement the firm’s existing 23-year old $3.8bn New Asia fund.

The fund will be managed by Eric Moffett, who has been managing funds for 13 years. By investing in between 40 and 70 high-quality companies, the fund will have an Asia excluding Japan remit and its sector and country positions will be a result of the team’s bottom-up stock selection process.

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Available to UK investors, the fund has a sterling share class which has an annual management fee of 1 per cent and a total expense ratio of 1.17 per cent. The minimum investment is $1,000 or the equivalent in sterling - currently £590.

Unlike the firm’s existing Asia fund, which focuses on earnings growth, the Asia Opportunities fund will focus on companies with highly predictable earnings.

www.troweprice.com

MM Comment:

As Asia moves into slow-growth territory, it is becoming harder for funds to generate the same returns they were seeing a decade ago. But it is still an incredibly popular space to invest in.

That being said, the quality of companies in Asia has been improving still and the markets are becoming more developed as they evolve further, creating new opportunities around the continent.

T. Rowe Price is very well-known in the US, but has only been available to UK investors over the past few years, however the strong management teams means investors should not shy away from the firm despite it not being as well known.

The fund is in no way groundbreaking, but it definitely creates more opportunities for UK investors to expand their investment horizons and portfolios. This is especially as the Asian markets continue to grow, even at a slower rate than we were seeing in the early 2000s.