Prusik Asian Equity Income Fund
Investment Objective
To select a portfolio of equities in the Asia Pacific ex Japan region which have the ability to grow their dividends over the time. A particular emphasis is placed on identifying those companies with exceptional franchises, annuity like cash flows and pricing power which are trading at significant discounts to intrinsic value with limited downside risk. We have both absolute and relative targets: to generate 10-15% total returns with similar levels of volatility and also to outperform the MSCI Asia Pacific ex-Japan Index by 5-10% annually.
Investment Process
The process is both quantitative and qualitative with the latter dominating. We follow a rigorous investment process to identify stocks with the following characteristics:
- Operating in an industry with high barriers to entry.
- Limited economic cyclicality.
- Limited downside to worst case valuation.
- Significant upside to best case valuation.
- Strong, stable cash flow growth.
- Sustainable dividend policy.
- Low volatility of distributions and ability to pay dividend even in challenging economic circumstances.
- Low debt to equity.
- High return on equity.
