Aberdeen New Thai Investment Trust (LON:ANW) has built a track record of more than 25 years as a specialist investor in Thai equities. The manager focuses on high-quality, cash-generative companies, which underpin ANW’s sector-leading 1.8% dividend yield. ANW’s NAV performance has been strong over one year, but lagged the SET index rally, which was led by more speculative stocks. The Thai stock market was largely unaffected by the passing of King Bhumibol in October but a short-term softening of economic activity is likely as the country mourns. However, an improving economic outlook and opportunities for Thai companies to expand into the dynamic ASEAN region are encouraging prospects for the medium term.
Investment strategy: Consistent, disciplined approach
Aberdeen’s Asian equities investment team follows a consistent, disciplined bottom-up process, undistracted by market fluctuations, aiming to add value through stock selection. The team seeks high-quality companies, trading at valuations that do not reflect their long-term potential, and meeting management before investment is an essential step in the process. The manager aims to maintain a diversified portfolio but sector exposures are not influenced by index weightings. A long-term approach is taken, reflected by portfolio turnover averaging c 10% pa over the last five years. Gearing is used selectively to enhance returns, up to a maximum 15% of NAV.
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