The fund management focuses on companies with convincing structural growth and high long-term earnings. These companies are based in Emerging Asian countries, but often operate globally. Based on fundamental stock selection, companies are selected that achieve sustainable growth over long periods of time with high profitability. Investments are made primarily in large caps as well as high-growth smaller and medium-sized stocks. The decisive criteria for these business models are high entry barriers, end markets with structural growth and excellent management teams.
- Concentrated portfolio of about 45 stocks
- All cap approach, i.e. exploiting investment opportunities across all market segments
- Long-term investment horizon and therefore low portfolio turnover
- Benchmark-agnostic approach
Further details on the opportunities and risks of this fund can be found in the sales prospectus.
Monthly market comment
The Berenberg Emerging Asia Focus Fund outperformed its benchmark in November due to its overweight in the technology and communications sector. PDD reported a strong result as the company further increased its market share in the domestic e-commerce sector and its subsidiary Temu continued its expansion abroad. Strong quarterly figures due to higher margins ensured a positive contribution from Gold Circuit. SK Hynix also performed well due to the rising demand for HBM memory chips. On the negative side, the sudden cancellation of the cloud spin-off and the continued high regulatory risk led to a substantial loss of confidence in Alibaba. Bumrungrad Hospital recorded a negative contribution due to profit-taking and a slowdown in growth among foreign patients. A pessimistic outlook and persistently high price competition in the electric car sector led to a correction of BYD. As a result of the weak consumer sentiment for electric cars, we sold the battery manufacturers Samsung SDI and LG Energy Solution.
Javier Garcia has been a portfolio manager at Berenberg since October 2022. He began his investment career in 2002 at Julius Baer Asset Management (later Swiss & Global Asset Management), where he became Co-Manager of the JB Global Emerging Markets Equity Fund in 2006 and additionally served as Lead Fund Manager of the JB Black Sea Fund and the JB Russia Stock Fund from 2009 onwards. From 2013 to 2022, he has been Senior Portfolio Manager Emerging Markets Equities at UBS Wealth Management. In this role, he built and managed the Global Emerging Markets and Asian Equities business. Javier Garcia holds a Bachelor in Business Administration and Economics from the University of Zurich and is a CFA Charterholder.
Sabrina Bendel has been Product Specialist for the discretionary Equity Portfolio Management team since April 2017. Before joining Berenberg, she worked in the Asset Management division of Deutsche Bank Group (DWS) since 2014. There, she was responsible for European and German Equity Funds as a Product Specialist. Sabrina Bendel holds a Bachelor of Science in Economics and Business Administration from the University of Hohenheim.
The fund does not actively manage its carbon footprint, however, emissions data such as CO2 intensity are relevant parameters which can be used to assess the efficient management of a company and the extent of transition risks.
The data provider MSCI ESG uses an ESG score of 0 to 10 to assess the management of material ESG risks of portfolio holdings compared to competitors.
ESG Controversies Screen
Investments in the fund are monitored for ESG controversies and, with the help of MSCI ESG data, flagged according their severity. Thereby, potential ESG risks of investments are identified. In the case of an orange flag (severe controversy), we enter into an active exchange with the company. In the case of a red flag (very severe controversy), the company is excluded.