Macquarie Asia New Stars No. 1 FundUncovering new opportunities in Asia

What the Macquarie Asia New Stars No. 1 Fund aims to offer

Access to Asia

Exposure to some of the world's fastest growing economies

Risk managed approach

Focus on corporate governance and disciplined investment criteria

Proven track-record

Strong long-term performance produced by a research focused, Asia-based investment team

Fund facts
Investment objective The Macquarie Asia New Stars No. 1 Fund aims to capture the potential capital growth of small and mid-sized companies in Asia (excluding Japan), and to provide some income
Benchmark MSCI Asia Ex-Japan Small Companies Index (Unhedged in AUD)
Portfolio managers John Bugg
Inception date 27 May 2010
Fund size $A248.1M (current as at 30 September 2018)
Management fee 1.20% pa of the net asset value of the Fund
Performance fee 20% of the cumulative outperformance of the fund (after management fee and expenses) above the return of the Index, subject to a 'high watermark' and inclusive of GST
Minimum investment $A20,000
Distribution frequency Generally annually
APIR code MAQ0640AU

Read the Product Disclosure Statement for more details on fees and expenses that may be charged.

Investment strategy

The Fund provides exposure to an actively managed portfolio of Asian equities. All securities are listed, or expected to be listed, on Asian exchanges, excluding Japan.

The Fund may also provide exposure to:

  • equities that derive or are expected to derive a significant portion of their revenue from Asia, excluding Japan, listed on exchanges in the US and the UK
  • derivatives (including options, futures, warrants and forwards), and
  • cash.

The portfolio is actively managed using a combination of quantitative screening and an intensive fundamental research process.

The investment team aims to build a diversified portfolio of small and mid-sized companies by exploiting key inefficiencies in Asia (ex Japan) markets.

Our investment team uses quantitative screening followed by in-depth fundamental research to identify companies that:

  • rank highly on our quantitative screens
  • appear undervalued over the medium term
  • are leaders in attractive industries with a competitive advantage, and
  • are able to demonstrate strong management and corporate governance.

The in-depth fundamental research includes continuous interaction with company management, customers, competitors and suppliers.

The investment team also has a well-developed risk management system and a disciplined investment approach, which includes trying to attend at least 400 direct company meetings each year.

Performance

Net returns as at 30 September 2018

 
Period 1m (%) 3m (%) 6m (%) 1y (%) 2y (%pa) 3y (%pa) 5y (%pa) Inception* (%pa)
Macquarie Asia New Stars No.1 Fund** -3.17 -4.46 0.91 -0.17 -2.90 8.75 9.47
Benchmark*** -4.00 -2.53 5.63 7.78 5.53 8.48 6.52

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Past performance is not a reliable indicator of future performance.

* Inception date is 27 May 2010

** Net returns are quoted after the deduction of all fees and expenses. Total returns are calculated based on changes in net asset values and assume the reinvestment of distributions. Due to individual investor circumstances, your net returns may differ from the net returns quoted above.

*** The Benchmark is the MSCI Asia Ex-Japan Small Companies Index (Unhedged in AUD).

Managers

John Bugg
John Bugg
  • Head of Asian Listed Equities
  • John Bugg (Executive Director) is Head of the Asian Listed Equities team and Portfolio Manager for the Macquarie Asia New Stars strategy. John's primary role is the supervision and development of the research and investment

  • Read full bio

Risks

All investments carry risk. Different investments carry different levels of risk, depending on the investment strategy and the underlying assets. Generally, the higher the potential return of an investment, the greater the risk. The risks of investing in this Fund include:

Investment risk: The Fund has exposure to share markets. The risk of an investment in the Fund is higher than an investment in a typical bank account or fixed income investment. Amounts distributed to unitholders may fluctuate, as may the Fund’s unit price. The unit price may vary by material amounts, even over short periods of time, including during the period between a redemption request or application for units being made and the time the redemption unit price or application unit price is calculated.

Small companies risk: The fund has exposure to companies generally considered small to medium in terms of market capitalisation. Companies within this sector of the market may include recently established entities with limited public information, or entities engaged in new-to-market concepts which may be speculative in nature. Shares in companies in this sector are generally less liquid and more volatile than those of larger companies. Small companies exposure may result in higher unit price volatility and an increased risk of loss.

Asian region risk: Investments in the Asian region are generally subject to a higher risk than investments in developed market economies. Many Asian countries may be considered emerging markets, and are exposed to risk factors including lower liquidity, the potential for political unrest, the increased likelihood of sovereign intervention, currency volatility, and increased legal and tax risk. Investments in Asian markets therefore may experience increased asset price volatility, and incur higher currency, default, and liquidity risk. In addition, the Underlying Fund may trade in certain Asian markets through crossmarket investment channels, such as the stock connect programs that link China’s mainland stock exchanges to that of Hong Kong. Use of such programs may expose the Fund to risks which would not usually arise when trading equities in other countries. This includes the risk of restrictions on buying or selling certain companies, quotas which could lead to the inability to trade or the forced sale if a quota is reached, suspension risk and changes to the rules or regulations of the stock connect programs.

More information on the risks of investing in the Fund is contained in the Product Disclosure Statement, which should be considered before deciding to invest in the Fund.

How to invest

Send us the Application Form and any required identification documents

Resources

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