31 October 2014
Update: 166
Blackfriars Asset Management
Asian Focus Fund*
STERLING B CLASS
INVESTMENT OBJECTIVE
STRUCTURE
The Blackfriars Asian Focus Fund invests in Asian equity markets including Japan and aims to
generate long term capital growth. The Fund is not managed against, nor constrained by, any
index. The mandate is "long only" and the portfolio is subject to normal market risk. The Sterling
B share class is unhedged.
Investment Manager
Blackfriars Asset
Management Limited
Legal Status
a sub fund of
Blackfriars Developing
Markets Funds plc, an
Irish domiciled UCITS
(IV)
Auditors
PWC Ireland
Administrator
HSBC Securities Services
(Ireland) Limited
PORTFOLIO COMMENTARY
The Asia Pacific Index rose in October thanks to strong performances from Hong Kong, China and
India. In Hong Kong, the Occupy Central demonstrations began to dissipate and the market
recovered some of its earlier losses. ASEAN, Japan and particularly Korea underperformed. The
Fund's heavily underweight position in Hong Kong and China was the main reason that it trailed
the regional index in October although over the last three months it remains comfortably ahead.
Custodian
HSBC Institutional
Trust Services
(Ireland) Limited
DEALING INFORMATION
£6,300
Minimum Initial Investment
£1,600
Minimum Subsequent Investment
Dealing Frequency
Daily (by 5pm)
Dealing Contact
– HSBC Fund Services
Consumer stocks across the region were firm in October. Amongst the Fund's holdings Zee
Entertainment continued its recent run and rose just over 10% whilst Want Want gained 9%.
TSMC was one of a number of holdings to announce quarterly earnings results; net income rose
47% and the stock price gained 9% on the month. Keyence, the Japanese factory automation
company, reported sales up 22% and net income up 32%. The stock gained 8% in the month.
However our auto makers did not fair so well. Both Honda and Hyundai were down 12% after
announcing disappointing results. Hyundai can justifiably cite currency headwinds but Honda has
no such excuse - its profitability has come under pressure despite the weaker Yen. We sold our
position.
+ 353 1635 6799
Other Enquiries
– Blackfriars Asset
Management Limited
+ 44 (0) 20 7332 2270
SEDOL
3205545
ISIN
IE0032055455
Bloomberg Ticker
BDTIAIB ID
Benchmark
MSCI AC Asia Pacific
IMA Sector
Asia Pacific including Japan
Morningstar Category
200
150
Asia-Pacific inc. Japan
Annual Management Fee
0.9%
Ongoing Charges
1.7%
Entry Charge
NIL
Exit Charge
NIL
£0.52
Historic Dividend
100
Historic Yield
1.6%
Dividend Paid
February
£32.55
Net Asset Value per share
50
Oct 09
£26.8
Fund Size (mn)
Oct 10
Oct 11
Oct 12
Blackfriars Asian Focus Fund B £
Oct 13
Oct 14
MSCI AC Asia Pacific TR £
ONE MONTH
THREE MONTH
SIX MONTH
ONE YEAR
THREE YEAR
FIVE YEAR
Blackfriars Asian Focus B £
MSCI AC Asia Pacific £
1.1%
2.5%
3.4%
1.3%
9.0%
10.5%
-2.2%
2.5%
25.5%
26.8%
37.4%
41.9%
HISTORIC PERFORMANCE
2009
2010
2011
2012
2013
2014YTD
Blackfriars Asian Focus B £
MSCI AC Asia Pacific £
42.2%
24.2%
20.2%
21.2%
-15.9%
-14.7%
21.0%
11.5%
3.4%
9.8%
3.0%
6.2%
DISCRETE PERFORMANCE
YR TO OCT 10
YR TO OCT 11
YR TO OCT 12
YR TO OCT 13
YR TO OCT 14
Blackfriars Asian Focus B £
MSCI AC Asia Pacific £
21.0%
16.7%
-9.5%
-4.1%
11.3%
3.0%
15.2%
20.2%
-2.2%
2.5%
CUMULATIVE PERFORMANCE
* Formerly BDT Invest Asian Focus Fund
Sterling total return including net dividends, source; Blackfriars Asset Management Limited, MSCI
Blackfriars has a Citywire Silver Rating in the Equity - Asia Pacific including Japan sector, awarded for
the rolling risk adjusted performance of this Fund over the period 30/06/2007-30/06/2014.
This document is intended solely for Professional Investors and should not be relied upon by any other persons. This document does not constitute investment advice and should not be regarded
as constituting a distribution, an offer or solicitation to sell shares or units in any of the Blackfriars Asset Managment funds in any jurisdiction in which such distribution, offer or solicitation would
be contrary to local law or regulation. Past performance is not a guide to future returns. The value of investments and the income from them can go down as well as up and an investor may not get
back the original amount invested. This document is for information only. The information and opinions contained have been obtained from sources believed to be reliable but no representation or
warranty is made as to their accuracy, completeness or correctness. This document is being issued by Blackfriars Asset Management Limited, authorised and regulated by the Financial Conduct
Authority in the United Kingdom and is also a registered investment adviser with the United States Securities and Exchange Commission under the Investment Advisers Act of 1940.
Compliance: 3846 04 November 2014
31 October 2014
Update: 166
TOP TWENTY HOLDINGS
REGULATORY STATUS
Listed on the Irish Stock Exchange, approved by the
Central Bank of Ireland and Recognised by the FCA.
WEIGHT
COMPANY
MARKET
SECTOR
SUMITOMO MITSUI FINANCIAL
JAPAN
FINANCIALS
4.6%
MITSUBISHI UFJ FINANCIAL
JAPAN
FINANCIALS
4.0%
TSMC
TAIWAN
INFORMATION TECHNOLOGY
3.9%
KIIDS
ITC
INDIA
CONSUMER STAPLES
3.8%
WANT WANT CHINA
CHINA
CONSUMER STAPLES
3.6%
The Key Investor Information Documents can be
found on our website.
SEVEN & I HOLDINGS
JAPAN
CONSUMER STAPLES
3.6%
NOMURA REAL ESTATE HOLDINGS
JAPAN
FINANCIALS
3.5%
SIAM CITY CEMENT
THAILAND
MATERIALS
3.3%
NIDEC CORP
JAPAN
INDUSTRIAL
3.3%
KEYENCE
JAPAN
INFORMATION TECHNOLOGY
3.3%
ZEE ENTERTAINMENT ENTERPRISE
INDIA
CONSUMER DISCRETIONARY
3.2%
MITSUBISHI UFJ LEASE
JAPAN
FINANCIALS
3.1%
SAMSONITE INTL
CHINA
CONSUMER DISCRETIONARY
3.1%
HITACHI
JAPAN
INFORMATION TECHNOLOGY
2.9%
SAMSUNG ELECTRONCIS
KOREA
INFORMATION TECHNOLOGY
2.8%
LAFARGE CEMENT
MALAYSIA
MATERIALS
2.7%
SONY
JAPAN
CONSUMER DISCRETIONARY
2.6%
MINTH
CHINA
CONSUMER DISCRETIONARY
2.6%
AYALA LAND
PHILIPPINES
FINANCIALS
2.5%
IJM LAND
MALAYSIA
FINANCIALS
2.5%
SECTOR EXPOSURE
Liquidity
1.5%
PROSPECTUS
The
Prospectus
and
other
supporting
documentation and application forms can be found
on our website.
www.blackfriarsam.com
7.6%
Consumer Staple
30.6%
Information Tech
Liquidity
Japan
6.5%
5.6%
12.9%
The Reporting Fund Income Disclosure Statement
can be found on our website.
COUNTRY EXPOSURE
Financials
5.5%
8.1%
REPORTING FUND
5.6%
India
8.5%
33.9%
Consumer Disc
Materials
China
Thailand
9.2%
Malaysia
14.5%
Industrial
21.3%
STEPHEN SIMMONS
Taiwan
9.7%
Utilities
SIMON DOBSON
12.8%
Philippines
HENRY THORNTON
CONTACT DETAILS
CONTACT DETAILS
CONTACT DETAILS
+44 (0)20 7332 2287
+44 (0)20 7332 2278
+44 (0)20 7332 2272
[email protected]
[email protected]
[email protected]
Stephen is Head of Business Development and Sales, bringing
some 19 years of experience in Asian markets to Blackfriars
in 2014. After leaving the Army he returned to Hong Kong
and spent 11 years with CLSA Asia Pacific Markets in Hong
Kong, London and latterly in Thailand where he was Country
Head. He left CLSA to become a partner in Cambodia’s first
private equity fund. He remained with the fund until its
successful hard close at which point he returned to London
to join BDT Invest as Client Relationship and Marketing
Director.
Simon is a Portfolio Manager at Blackfriars, having joined the
team in 2014. Prior to that, he joined GT Management
(latterly INVESCO) in 1985 as a fund manager in Hong Kong.
In 1988 he was appointed Investment Director and Head of
the South East Asian investment team, a position he retained
until he moved to Japan. In 1992 he transferred to Tokyo,
working on Pan Asian investment strategy and managing
Japanese equities. In 1999 he transferred to London to
manage global equity mandates for Japanese clients. Simon
resigned in 2000 to co-found BDT Invest and managed the
BDT Invest Japan Focus Fund and the Japanese portion of the
BDT Asian Focus Fund (now Blackfriars Asian Focus Fund). He
earned a BA from Oxford University.
Henry joined Blackfriars in 2014 as a Portfolio Manager. He
began his career at Thornton Management (Asia) in 1985. In
1989 he was appointed investment director of Royal Trust
Asset Management (Asia), a position he retained during
subsequent acquisitions by Credit Lyonnais International
Asset Management and Nicholas Applegate Capital
Management. In 1999 he was appointed head of emerging
markets at Colonial First State First Investments, a position
he retained until his resignation in April 2000. Henry went on
to co-found BDT Invest LLP and was chief executive officer
for 14 years, where he managed the Establishment
Investment Trust and co-managed BDT Invest's Oriental
Focus and Asian Focus Funds (now Blackfriars Oriental Focus
and Asian Focus Funds). He holds a BSSc from Bristol
University.
This document is intended solely for Professional Investors and should not be relied upon by any other persons. This document does not constitute investment advice and should not be regarded
as constituting a distribution, an offer or solicitation to sell shares or units in any of the Blackfriars Asset Managment funds in any jurisdiction in which such distribution, offer or solicitation would
be contrary to local law or regulation. Past performance is not a guide to future returns. The value of investments and the income from them can go down as well as up and an investor may not get
back the original amount invested. This document is for information only. The information and opinions contained have been obtained from sources believed to be reliable but no representation or
warranty is made as to their accuracy, completeness or correctness. This document is being issued by Blackfriars Asset Management Limited, authorised and regulated by the Financial Conduct
Authority in the United Kingdom and is also a registered investment adviser with the United States Securities and Exchange Commission under the Investment Advisers Act of 1940.
Compliance: 3846 04 November 2014