Best In Class  

Best in Class: Schroder Asian Alpha Plus

It is a flexible, best ideas portfolio of 50 to 70 stocks, with Mr Dobbs using the large research team at his disposal for local market insight, quantitative screening and risk management.

The investment process is bottom-up with a top-down overlay, with weightings reflecting whether he sees stocks demonstrating visible earnings growth, sustainable returns or are simply attractively valued.

At present, Hong Kong (24.4 per cent) and Chinese equities (22.6 per cent) represent the largest country holdings in the fund, while sector allocations are reasonably spread with financials (20.7 per cent), and information technology (18.8 per cent) the largest.

The fund is designed for investors with a medium to long-term investment time horizon of three to five years and it has delivered top quartile returns of 70.5 per cent and 85.5 per cent over both timeframes respectively, according to FE Analytics data to January 28 2019.

The manager believes there are currently opportunities in domestically-focused growth stocks in sectors like leisure, healthcare, internet services and education. He is also favouring a number of banks in the region, adding that they are strongly capitalised and are therefore able to absorb losses if needed.

Mr Dobbs – together with the Asian team at Schroders – has shown an ability to consistently outperform and find the next growth opportunities in the region.

The fund’s flexibility to do this has made it a winner for investors.

Darius McDermott is managing director of FundCalibre