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Views please on my Asian holdings?
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Ramondo
Posted: 12 January 2025 07:55:26(UTC)
#1

Joined: 20/10/2018(UTC)
Posts: 700
I currently hold two Asian holdings namely:

Schroder Asia Pacific fund IT
and
Baillie Gifford Pacific fund B Acc.

I wish to dispose of one and either reduce therefore my Asian holding or add to the remaining holding or possibly sell both and invest in another Asian investment.

I would welcome views, opinions please as Asian investments are not a strong point of my knowledge.
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MarkSp
Posted: 12 January 2025 08:34:15(UTC)
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Joined: 02/02/2020(UTC)
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Ramondo;330840 wrote:
I currently hold two Asian holdings namely:

Schroder Asia Pacific fund IT
and
Baillie Gifford Pacific fund B Acc.

I wish to dispose of one and either reduce therefore my Asian holding or add to the remaining holding or possibly sell both and invest in another Asian investment.

I would welcome views, opinions please as Asian investments are not a strong point of my knowledge.


I like the Schroder IT. Long term it has been strong
I am not a BG fan or Aberdoom
IAT, JAGI and SOI worth a look
If you want income in spades and arent worried by capital growth HEFL
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Ramondo on 12/01/2025(UTC), dlp6666 on 13/01/2025(UTC)
Johan De Silva
Posted: 12 January 2025 09:07:26(UTC)
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Ramondo;330840 wrote:
Baillie Gifford Pacific fund B Acc.
This decision is straightforward. Sell this asset and pay the stamp duty for the trust (PHI) at a >14% discount. You could even allocate 10% of this to your global index - a free boost to your portfolio. We've effectively generated additional funds.

Potential risks:
1. The market in China could surge during the transfer period.
2. In the event of discount narrowing to zero or a premium you forget to switch back
3. Discount widening to 20% (unlikely and sector is due a boost after Trump tariffs are clearer)
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Ramondo on 12/01/2025(UTC), Guest on 12/01/2025(UTC)
Keith Cobby
Posted: 12 January 2025 09:33:11(UTC)
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Johan De Silva;330846 wrote:
Ramondo;330840 wrote:
Baillie Gifford Pacific fund B Acc.
This decision is straightforward. Sell this asset and pay the stamp duty for the trust (PHI) at a >14% discount. You could even allocate 10% of this to your global index - a free boost to your portfolio. We've effectively generated additional funds.

Potential risks:
1. The market in China could surge during the transfer period.
2. In the event of discount narrowing to zero or a premium you forget to switch back
3. Discount widening to 20% (unlikely and sector is due a boost after Trump tariffs are clearer)


Agree with this.
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Ramondo on 12/01/2025(UTC), dlp6666 on 13/01/2025(UTC)
ANDREW FOSTER
Posted: 12 January 2025 09:44:37(UTC)
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Johan De Silva;330846 wrote:


3. Discount widening to 20% (unlikely and sector is due a boost after Trump tariffs are clearer)


I don't think there will be a sector boost if Trump does what he says he will.

However, I don't actually think its likely in the short term
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Guest on 12/01/2025(UTC), Ramondo on 12/01/2025(UTC)
Big boy
Posted: 12 January 2025 10:08:19(UTC)
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Stick to facts and not fiction by ranking sector by to-days discounts. Clearly you hold the 2 cheapest and rotate by rankings .

Once the sector starts to attract buyers you need to sell as the greed arises at say 10%. This will tend to be close to 12 month highs. Remember the largest discounts tend to be close to 12 month lows.

One of the most attractive times to invest in the Far East was during the financial crisis when the sector stood on discounts of 25%. Another case where DD let many investors down.

I don’t believe in “past performance “ as this only tells you when you should have bought or sold.

I think we can all learn a lesson from SABA.
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Ramondo on 12/01/2025(UTC), ben ski on 12/01/2025(UTC)
Johan De Silva
Posted: 12 January 2025 10:36:15(UTC)
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ANDREW FOSTER;330854 wrote:
Johan De Silva;330846 wrote:


3. Discount widening to 20% (unlikely and sector is due a boost after Trump tariffs are clearer)


I don't think there will be a sector boost if Trump does what he says he will.

However, I don't actually think its likely in the short term


Yeah. We know any outcome often results in a rise in stocks due to certainty, it could likely escalate into a longer tariff war so we won't know short term. Trumps bark is often more than his bite.

If the current discount was 18% where we have seen EGL, that's the huge buy zone for me, 20% is extremely pessimistic for liquid assets.
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Ramondo on 12/01/2025(UTC), ANDREW FOSTER on 12/01/2025(UTC)
ben ski
Posted: 12 January 2025 16:11:09(UTC)
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Ramondo;330840 wrote:
I currently hold two Asian holdings namely:

Schroder Asia Pacific fund IT
and
Baillie Gifford Pacific fund B Acc.

I wish to dispose of one and either reduce therefore my Asian holding or add to the remaining holding or possibly sell both and invest in another Asian investment.

I would welcome views, opinions please as Asian investments are not a strong point of my knowledge.


I think the only thing that makes any sense is to hold a FTSE world index tracker, and let the market dictate your exposure to Asia. Especially if you're not a highly skilled global value manager or macro trader.

If you were to do anything, you could justify adding 5-10% exposure to a FTSE Emerging Markets index (that should cover Asia), because valuations are low and growth high, and if you don't mind holding for 15-20 years, you might take advantage of the market's short-termism and eek out a higher return. But anything else just makes no sense at all.

(A pure discount play could be justified – but we could be looking at a long period of Asian underperformance if Trump's next term goes well.)
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Ramondo on 13/01/2025(UTC), dlp6666 on 13/01/2025(UTC)
Thrugelmir
Posted: 12 January 2025 23:31:23(UTC)
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Johan De Silva;330857 wrote:
ANDREW FOSTER;330854 wrote:
Johan De Silva;330846 wrote:


3. Discount widening to 20% (unlikely and sector is due a boost after Trump tariffs are clearer)


I don't think there will be a sector boost if Trump does what he says he will.

However, I don't actually think its likely in the short term


Yeah. We know any outcome often results in a rise in stocks due to certainty, it could likely escalate into a longer tariff war so we won't know short term. Trumps bark is often more than his bite.



Trump is a bully that will use the USA's might to it's own advantage as a bargaining tool. Doesn't care a damn about anybody else. Campaign was backed by rich individuals in business. They'll be expecting to benefit from his election.
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Ramondo on 13/01/2025(UTC)
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