Investment Strategies
Asian Leaders Series
Asia Pacific Leaders (including Japan)
Asia Pacific Leaders (excluding Japan)
Asia Dividend Champions (equity income)
Thematic Portfolios
Global Listed Infrastructure
The eSports and Entertainment Economy
The Subscription Economy
Future Foods
Asia Pacific Leaders
Strategy Lead : Adam Upton
Asset Class : Equities
Investment Style : Active / High Conviction
To provide a concentrated exposure to the best equity investments from the Asia Pacific Region (including Japan).
Investment Strategy
An actively managed portfolio of 25-30 stocks across the Asia Pacific region that have exceptional prospects over the medium to long term.
Macro Themes
- Geopolitical uncertainty, trade friction and inflation are here to stay.
- Re-balancing of China’s economy will take time and presents risks to growth.
- Recalibration of supply chains will be a long process with many disruptions.
- ESG policies are inflationary.
- Rotation within markets will generate a wide dispersion of returns (a good environment for active asset management).
- Focus on quality, sustainable cash flows and earnings momentum.
- Looking for industry leaders at sensible valuations.
- Limited exposure to banks & financials.
- Avoid exposure to China real estate and materials.
- Japan focus on semi-equipment and materials exporters.
- Beneficiaries of higher inflation and eventually rates (excl banks).
- Corporate governance reforms will drive incremental returns in Japan.
Kindly contact the investment manager.
Asia Pacific Leaders - Ex Japan
Strategy Lead : Adam Upton
Asset Class : Equities
Investment Style : Active / High Conviction
To provide a concentrated exposure to the best equity investments from the Asia Pacific Region (excluding Japan).
Investment Strategy
An actively managed portfolio of 25-30 stocks high conviction portfolio of securities across Asia Pacific that have exceptional prospects over the medium to long term.
Macro Themes
- Geopolitical uncertainty, trade friction and inflation are here to stay.
- Re-balancing of China’s economy will take time and presents risks to growth.
- Recalibration of supply chains will be a long process with many disruptions.
- ESG policies are inflationary.
- Rotation within markets will generate a wide dispersion of returns (a good environment for active asset management).
- Focus on quality, sustainable cashflows and earnings momentum.
- Looking for industry leaders at sensible valuations.
- Limited exposure to banks & financials.
- Avoid exposure to China real estate and materials.
- Japan focus on semi-equipment and materials exporters.
- Beneficiaries of higher inflation and eventually rates (excl banks).
Kindly contact the investment manager.
Asia Dividend Champions
Strategy Lead : Adam Upton
Asset Class : Equities
Investment Style : Active / High Conviction
To generate superior total returns (dividend and capital gain) over the medium term.
Investment Strategy
An actively managed portfolio of 25-30 stocks from the Asia Pacific region with high and sustainable dividend yields, reasonable valuations and robust balance sheets.
Macro Themes
- Geopolitical uncertainty, trade friction and inflation are here to stay
- Rebalancing of China’s economy will take time and presents risks to growth
- Recalibration of supply chains will be a long process with many disruptions
- ESG policies are inflationary
- Rotation within markets will generate a wide dispersion of returns (a good environment for active asset management)
- Technology, real estate, commodities largest exposures
- Limited exposure to banks & financials
- Avoid exposure to China real estate and materials
- Conscious of EPS momentum and sustainability of cash flows
- Focus on beneficiaries of higher inflation, real assets (value over growth)
- Selective exposure to real estate (ex China)
Kindly contact the investment manager.
Global Listed Infrastructure
Strategy Leads : Robert Swift & Charles Wannan
Asset Class : Equities
Investment Style : Active / High Conviction
The aim of the portfolio is to outperform the 50/50 MSCI World Core Infrastructure and MSCI World Infrastructure and MSCI World Infrastructure Benchmark, after fees.
Investment Strategy
An actively managed 50 stock portfolio of global securities that generate yield and an inflation hedge with lower volatility than regular equities portfolios.
Macro Themes
- Renovation – existing infrastructure and government constraints provide opportunity.
- Reinvigoration – significant public and private investment secured for this specific use.
- Renewables – capitalizing on renewable trends and transitions.
- Overweight China and Japan.
- Overweight Oil and Gas pipelines.
- Underweight Telecommunications and Airports.
Kindly contact the investment manager.
The eSports and Entertainment Economy
Strategy Leads : Myles Ormerod
Asset Class : Equities
Investment Style : Active / High Conviction
The aim of the portfolio is to generate long-term capital gains by investing in eSports and Entertainment Economy.
Investment Strategy
An actively managed approximately k portfolio 20 stocks with exposure to the video gaming, eSports and entertainment industries.
Macro Themes
- Video games, eSports and entertainment are embedded into popular culture.
- The gaming industry is expected to reach a market size of US$257bn by 2025, representing CAGR of almost 10% from 2021 levels.
- The video games market was worth US$90bn in 2020, with US$4.5bn spend on immersive games.
- The eSports market is smaller valued at just over US$1bn in 2020 but growing at very high rates. Expected to be USD1.6bn in 2024.
- Web 3.0 adoption is the next iteration (third generation) of the internet which focuses on decentralization, blockchain technology, crypto-assets and metaverses.
- Rise of new gamers from new technology developments including, but not limited to virtual reality, streaming services etc.
- Corporate activity in video games, esports, cloud gaming, and online competitions are also driving growth.
- Most valuations have mean–reverted in the past 12 months offering opportunities to invest at more reasonable valuations.
- Hardware and software upgrades to accommodate the evolution towards Web 3.0 (applications and services increasingly powered by blockchains, crypto-assets and metaverses).
- Significant M&A opportunities of smaller game studios and blue-chip companies as incumbents and internet companies look to corner market share in specific genres and IP ahead of Web 3.0 transition and expansion.
Kindly contact the investment manager.
The Subscription Economy
Strategy Leads : Myles Ormerod
Asset Class : Equities
Investment Style : Active / High Conviction
The aim of the portfolio is to generate long-term capital gains, after fees, by investing in subscription-based businesses.
Investment Strategy
An actively managed approximately 20 stock high conviction portfolio of securities globally that invests primarily in companies that have subscription features, an existing a subscription business model and/or transitioning towards one across all industries.
Macro Themes
- Subscription is the future, if not already a main feature of economies, business and consumption.
- A category that has only started to gamer attention with the recent successes of some listed companies.
- Limited no. of funds providing this thematic exposure, while portfolio constituents are US-centric focused within the information Technology sector and not particularly innovative.
- On average, companies have maintained double-digit revenue growth rates despite the pandemic.
- An overlooked thematic – business with strong predictability of revenue and cash flows.
- Subscription businesses are industry agnostic.
- Ability to provide unique exposure and inherent diversification in portfolio mix through a value-tilt approach.
Kindly contact the investment manager.
Future Foods
Strategy Leads : Charles Wannan
Asset Class : Equities
Investment Style : Active / High Conviction
The aim of the portfolio is to outperform a blended bench market of MSCI ACWI Select Agriculture Producers Investable Market Index and MSCI ACWI Agriculture & Food Chain Index.
Investment Strategy
Long only highly concentrated strategy of 20-30 securities focusing on agriculture and food production.
Macro Themes
- By 2050 the world will need to produce 70% more food.
- Agricultural efficiency gains are dropping across the industry.
- Cost of agricultural inputs will continue to rise accelerating the need for efficient farming techniques.
- Automation and precision farming.
- Enhanced efficiency fertilizers.
- Supplementation and nutritional ingredients.
Kindly contact the investment manager.
Phone
+852 3589 5545
info@aopcapital.com
Address
5A, 5/F, Winning Centre,
46-48 Wyndham Street Central,
Hong Kong