Products

MS Dalton Asia Pacific UCITS Fund (3)

The MS Dalton Asia Pacific UCITS Fund’s objective is to seek long-term capital appreciation and to generate absolute returns through a diversified portfolio of long and short positions in equity and equity related securities with a focus on the Asia Pacific region. Dalton Investments (“Dalton”), which manages over $3.2bn in assets within Asia out of $3.6bn in total (as of 30 September 2017), emphasizes value investments; as such, its’ investment process is based on bottom-up fundamental analysis that follows 3 steps: screening for qualitative traits and historical valuation, in-depth research and onsite visits and final assessment by James Rosenwald, as Portfolio Manager of the MS Dalton Asia Pacific UCITS Fund. Dalton typically looks to go long deep value opportunities, notably through companies that display strong alignment of interest, and short companies with declining catalysts. Macro‐economic trends are also considered when allocating stocks between countries and sectors. Dalton’s edge also lies in their risk management, concentrating on capital preservation and focused on a longer term investment perspective.

Dalton Asia Pacific Strategy Overview

  • Long-term investment perspective
  • Strive for disciplined, bottom-up, value approach to long and short investing
  • Margin of safety and alignment of interests with shareholders sought within investments
  • On-the-ground local research teams (10 in total) provide in-depth market analysis and global perspective
  • Exposure to companies with market caps in excess of $0.5bn and at least moderate trading volumes
  • Portfolio risk managed by employing position limits, adhering to stop‐loss guidelines, and managing gross and net exposures
  • Gross exposure: Maximum 200%
  • Net exposure: Maximum 80% of which the net long exposure to Japan and Greater China is limited to 70% with the maximum net long exposure to the remainder of the Asia Pacific region limited to 30%

Details

STRATEGY
  • ​Long/Short Equity focused on the Asia Pacific region (including Japan)
GENERAL FUND GUIDELINES
  • Value Investments: Dalton approaches investing with long-term disciplined, rigorous, bottom-up value analysis. Dalton searches for stocks based on factors including company’s intrinsic value, “margin of safety” and shareholders’ alignment of interests
  • Asia Including Japan: Dalton’s view is that Asia is transforming into one large market. Dalton believes their long-term experience investing in Japan has given them insight on how to identify potential value traps in Asian growth companies

  • The long book is diversified across market capitalization, industries, and countries and typically ranges from 30 to 60 positions

  • The short book is constructed for alpha generation, shorts not paired with specific long positions and is typically composed of 20 to 40 positions

INSTRUMENTS & GEOGRAPHY
  • Investment universe comprised of equities and equity related securities listed or traded on recognised markets
  • Net exposure to Japan and Greater China is expected to be limited to 70% of the NAV with the rest of Asia (including India) limited to 30% of NAV
PHILOSOPHY
  • Markets are not always efficient: Opportunistically invest when Dalton’s analysis of intrinsic value is mismatched with current market prices
  • Invest with a margin of safety: Manage risk based on substantial market dislocations, while using limited borrowing

  • Focus on long-term: Focus on long-term performance rather than short-term market fluctuations to provide room for Dalton’s investments to compound at superior rates over time

  • Volatility is not risk: Risk defined as the permanent loss of capital. Volatility provides Dalton with the opportunity to deploy capital

  • Understand risk tolerance: Capital preservation is the first priority when Dalton believes that their analysis of current market valuations meet their requirements for a large margin of safety and potential significant upside

Manager

James B. Rosenwald is Portfolio Manager for Dalton Investments’ Asian equities portfolios. He is a recognized authority in Pacific Rim investing with more than 30 years of investment experience. He formerly co-managed and founded Rosenwald, Roditi & Company, Ltd. (now known as Rovida Asset Management, Ltd.), which he established in 1992 with Nicholas Roditi. Mr. Rosenwald advised numerous Soros Group funds between 1992 and 1998. He commenced his investment career with the Grace Family at their securities firm, Sterling Grace & Co. Mr. Rosenwald holds an MBA from New York University and an AB from Vassar College. He is a CFA charterholder and a director of numerous investment funds. He is a member of the CFA Society of Los Angeles and the CFA Institute and is an Adjunct Professor of Finance at New York University's Stern Business School.

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Fund Facts

Legal Structure: UCITS Irish OEIC

Umbrella Fund: FundLogic Alternatives PLC

Fund Manager: Dalton Investments LLC

Passporting: Approved in Germany, Italy, Spain, U.K., France, Singapore, Switzerland, Luxembourg, Belgium, Austria and Liechtenstein

Base Currency: EUR

Other Currency Share Classes: USD, GBP

Liquidity: Weekly

Dealing Deadline (Subscription): 12 midday Irish time 3 Business Days prior to the relevant Dealing Day

Dealing Deadline (Redemption): 12 midday Irish time 3 Business Days prior to the relevant Dealing Day

Settlement Date (Subscription): by 12 midday Irish time 3 Business Days after the relevant Dealing Day

Settlement Date (Redemption): within 5 Business Days after the relevant Dealing Day

Fund Share Class Details

ISIN Code BBG Code Inception Mgmt Fee Perf Fee TER KIID Link
MS Dalton Asia Pacific UCITS Fund (3) (Exposure to the Dalton Asia Strategy)
Early Bird * B1 EUR IE00B96W6S29 FLAPB1E ID 17.07.2013 N.A. N.A. N.A. KIID
Inst. Seeding B2 EUR IE00B96W7011 FLAPB2E ID 30.08.2013 1.25% 7.5% 1.65% KIID
Institutional I EUR IE00B96W7B27 FLDAPIE ID 19.05.2017 1.50% 15.0% 1.90% KIID
Private Wealth Mgmt P EUR IE00B96W7H88 FLDAPPE ID 28.02.2014 1.50% 15.0% 1.90% KIID
Private Wealth Mgmt P USD IE00B96W7D41 FLDAPPU ID 28.02.2014 1.50% 15.0% 1.90% KIID
Retail A EUR IE00B96W7Q79 FLDAPAE ID 28.02.2014 2.50% 15.0% 2.90% KIID
Retail A USD IE00B96W7N49 FLDAPAU ID 14.11.2014 2.50% 15.0% 2.90% KIID

* Reference share classes used to report NAVs, Daily, MTD, YTD and LTD performances. 

Source: Northern Trust

The above figures refer to the past. Past performance are net of fees and are not a reliable indicator of future results.

(1) Includes 0.30% p.a. administration fee covering services providers, audit, passporting, KIID management costs and Risk Management responsibilities performed by Morgan Stanley International plc

(2) Includes 0.37% p.a. administration fee covering services providers, audit, passporting, KIID management costs and Risk Management responsibilities performed by Morgan Stanley International plc

(3) Includes 0.40% p.a. administration fee covering services providers, audit, passporting, KIID management costs and Risk Management responsibilities performed by Morgan Stanley International plc

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