US Bancorp Fund Services LLC has won the administration mandate from Investec for its new Asia Focus Fund, which is domiciled in the US.
Investec Asset Management (formerly Investec Guinness Flight) announced that its new Investec Asia Focus Fund is now available to investors. The fund’s investment objective is long-term capital appreciation, primarily through investments in securities in the Asia Pacific region, excluding Japan. The fund will normally invest in 35-40 stocks, representing the best stock ideas from Investec’s Asian investment management team, which is based in Hong Kong. The fund is designed for aggressive investors who are looking to take advantage of the growth opportunities available in the Asia Pacific region. The Investec Asia Focus Fund was created as a result of a merger the Investec Asia New Economy Fund into the Investec Asia Small Cap Fund, and the change in investment objective of the fund.
The new investment objective will enable the fund to place greater emphasis on investments in stocks of companies of any size, which derive a substantial portion of their revenues from business activities in Asia. This will allow Investec’s Asian investment management team to focus on regions and sectors that they feel present the greatest opportunities to investors. Robert Conlon and Agnes Chow will serve as co-managers of the new fund. The managers will be using a bottom-up approach for selecting stocks, and will focus on the companies with positive earnings revisions, high cash flow returns relative to their invested capital, and attractive valuations.
“The aggressive positioning of the portfolio may result in a high concentration of assets in one country”, said Robert Conlon. “Currently, the Asian investment team is attracted to opportunities in Korea, Taiwan and the smaller companies in Hong Kong. Initially, over 35 per cent of the Fund is likely to be in South Korea, around 30 per cent in Taiwan, and 25 per cent in Hong Kong. Less than 10% will be invested in Singapore, Malaysia, Thailand, Indonesia and the Philippines. The largest sector is likely to be semiconductors, followed by Korean financial services and consumer sectors, and smaller companies in Hong Kong with facilities in China.”
Separately, shareholders of the Investec Wireless World Fund and the Investec internet.com Index Fund have approved merging the assets of those funds into the Investec Wired Index Fund. The components of the Investec Wired Index Fund will not change due to this merger.