Global equities boutique Five Oceans Asset Management has been chosen to run a China- and India-themed fund offered by a Melbourne high-net-worth advisory, and has been supplied with an initial $50 million to invest.
Garnaut Private Client Advisers appointed Five Oceans on January 4 to run its AV Chindia Fund, a product targeting companies within and outside the Asian region that are positioned to profit from the economic growth of China and India.
The mandate has taken Five Oceans’ funds under management to $300 million, “with a significant part focused on Asia, rather than [our main] World Fund,” Ross Youngman (pictured), chief executive officer of the boutique, said.
The boutique’s long-only, concentrated Asia portfolio is overseen by Rob Nunley, who managed Asian equities at Maple-Brown Abbott before joining Five Oceans in March 2008, and Joe Kaderavek.
“We’re quite bullish on the technology story coming out of Asia, particularly Taiwan, and the rise of the Asian consumer, especially in China. We’re tending to be less focused on the exports, given that the rest of the world is problematic,” Youngman said.
The fund was also less focused on property, “exposed financials” and materials because the sector was beginning to overheat.
“We’ve cut back on energy stocks, but we’re keen on natural gas.”
The stocks favoured by the Challenger-backed boutique were Samsung and Posco from South Korea, Reliance Industries and Infosys from India, and Acer from Taiwan.
Like the flagship World Fund, the ‘Chindia’ offering can make large allocations to cash if compelling investment opportunities are not identified. “But it’s pretty much fully invested at the moment,” Youngman said.