Edinburgh Portfolio has rebalanced its £11m Asia fund of funds, selling a number of holdings, includ...
Edinburgh Portfolio has rebalanced its £11m Asia fund of funds, selling a number of holdings, including KC Lee's Fidelity South East Asia fund.
Mark Harris, head of investment management at the group, said the portfolio holds just seven funds and has 1.8% in cash.
He said: 'KC Lee is an experienced fund manager with very conservative valuation disciplines, focused on the production of positive cashflow. As a result, he had a high cash weighting, 25%, and a large exposure to quality blue chip names in the region.
'This was one of the few funds to offer a value bias and defensive attributes in the region and as a result offered good asset diversification. However, when markets sold off in March, these qualities proved to be illusory and the fund did not offer the safe haven we were seeking.'
Harris has also sold out of the Henderson Pacific Growth fund because of concerns over manager Heather Manners' top-down strategic direction, as well as a serious illness, which Harris said could keep her off the fund for some time.
Britannic Pacific Growth has been sold, as it is highly correlated to Edinburgh's other holdings. Proceeds from the fund sales have gone into First State Asia Pacific, managed by Angus Tulloch, Aberdeen Far East Emerging Economies, managed by Hugh Young, and JF Asia Equity.
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