Strategy Overview

Key Facts

About Balanced Strategy

The First State balanced strategy is targeting a 50:50 investment into Asian equities and Asian fixed income. We actively rebalance to the target allocation so that the exposure to each asset class does not exceed 60% at any time. This “active rebalancing” instills a “buy low, sell high” price discipline to asset allocation. As one asset class rises, it is sold; with the profit reallocated to the other asset class.

The Asian equity allocation of the balanced strategy is managed by FSSA Investment Managers, an independent investment management team within First State Investments with offices in Hong Kong, Singapore and Edinburgh. The team manages a range of Asia Pacific and Global Emerging Market equity funds on behalf of institutional and wholesale clients globally.

The FSSA Investment Managers team apply a consistent investment philosophy and process with a strong emphasis on high quality proprietary research. The team are bottom-up stock selectors, making regular company visits and carrying out extensive fundamental analysis to identify quality companies.
The team makes direct contact with more than 1,000 companies each year, looking at the management, franchise and financials in assessing the quality of a company. Once the quality of a company is established, the team apply a disciplined valuation process to identify reasonably priced growth prospects, and then invest for the long-term. The team adopts an absolute return mindset and is inherently conservative, focusing on capital preservation as well as capital growth. By weighing up the potential downside with the potential upside, the risk to long-term client returns is significantly reduced.

The Asian fixed income portion of the balanced strategy is managed by the First State Emerging Markets and Asian fixed income team that provides relevant, high quality investment products for Asia-focused investors covering interest rates, currency and credit across 15 Asian countries. Operating across Hong Kong and Singapore, the team comprises of highly experienced investment professionals focused on fixed income in this region. The team adopts a valuation-based investment philosophy and consider the longer-term earning potential for each investment by applying a fundamental ‘Five Factor Analysis’ on each of the 15 countries in the region.
The five factors that influence and ultimately drive returns are: the macro-economic outlook; the valuation of the rates, credit and currency markets; the sentiment in those markets; the political outlook; and a technical assessment. These factors help formulate an outlook within each country and forms the basis of the team’s Asian fixed income strategies. These strategies are implemented with a medium-term time horizon, a focus on risk-return, quality credit analysis and appropriate risk management.


(This is not classified as a green or ESG fund in Hong Kong)

Source: Lipper, Nav-Nav (with dividend reinvested where applicable)
Acc represents share class with dividends accumulated. M Dist represents share class with monthly distribution of dividends.  H Dist represents share class with half-yearly distribution of dividends.  Q Dist represents share class with quarterly distribution of dividends.  Dividends are not guaranteed and may be paid out of capital. All prices are for indication only. For detail, please refer to the Fund’s factsheet for further details including investment objective & strategy, asset allocation, top 10 holdings, comparison with benchmark (if any) and disclosure.

Responsible Investment

Responsible Investment

We believe that excellence in RI, operating to the highest standards of professional ethics and our commitment to our stewardship principles delivers better long term investment outcomes for our clients.

Our corporate RI strategy is based upon three strategic pillars of quality, stewardship and engagement. This strategy is underpinned by a strong governance framework and is supported by our specialist RI team. Each year we publish a responsible investment and stewardship report which outlines our progress in these areas and profiles each of our investment team’s approaches to responsible investment. We also include over 30 case studies of responsible investment in practice.

More about Responsible Investment >