Dalton Asia Pacific L/S UCITS Fund

Dalton Asia Pacific Strategy Overview

The Dalton Asia Pacific L/S 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 about $2.9bn in assets (as of 31 March 2022), 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 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.

  • 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 (12 analysts 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%

Performance as of 27/06/2022

NAV MTD YTD LTD
2,025.41€ -3.51% -9.28% 102.54%

powered by Advanced iFrame free. Get the Pro version on CodeCanyon.

Past performance is not an indicator of future performance.

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

  • Dalton is strongly convinced that companies with superior ESG practices are symbiotic with their investment philosophy. As such, not only have they become a UN-PRI signatory, they have developed a robust ESG practice, allowing to assign an internal rating to every company considered for investment across a large number of aspects that are expected to participate in the improvement of intrinsic value and further support wealth creation for minority shareholders

Fund Facts

Legal Structure: UCITS Sub-Fund of Irish ICAV
Umbrella Fund: Lafayette UCITS ICAV
Fund Manager: Dalton Investments INC
Passporting: Approved in Germany, Italy, Spain, U.K., Ireland, France, Switzerland, Luxembourg, Belgium, Austria and Liechtenstein
Base Currency: EUR
Other Currency Share Classes: USD, GBP
Liquidity: Daily
Dealing Deadline (Subscription): 1:00 p.m. Irish time 3 Business Days prior to the relevant Dealing Day
Dealing Deadline (Redemption): 1:00 p.m. Irish time 3 Business Days prior to the relevant Dealing Day
Settlement Date (Subscription): 11:59 p.m. Irish time 3 Business Days following the relevant Dealing Day
Settlement Date (Redemption): Within 5 Business Days after the relevant Dealing Day

Key Professionals

James B. Rosenwald
Portfolio 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.

Fund Share Class Details

   ISIN codeBBG codeInceptionMgmt FeePerf Fee

Early Bird *

B1EURIE00BFXZM553LDAPB1E ID17.07.20130.75%0.0%

Inst. Seeding

B2EURIE00BFXZM884LDAPB2E ID30.08.20131.00%10.0%

Institutional

B2USDIE00BFXZM777LDAPB2U ID11.08.20201.00%10.0%

Institutional

B2UN USDIE00BKDX3X91LAPUB2U ID25.02.20201.00%10.0%

Institutional

IEURIE00BFXZMK04LDAPUIE ID19.05.20171.50%15.0%

Private Wealth Mgmt

PEURIE00BFXZMN35LDAPUPE ID28.02.20141.50%15.0%

Private Wealth Mgmt

PUSDIE00BFXZMM28LDAPUPU ID28.02.20141.50%15.0%

Retail

AEURIE00BFXZMC20LDAPUAE ID28.02.20142.50%15.0%

Retail

AUSDIE00BFXZMB13LDAPUAU ID14.11.20142.50%15.0%

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

Extra-Financial Analysis & SFDR Classification

The Sub-Fund meets the classification of an Article 8 fund as it promotes environmental and social characteristics.

The Investment Manager evaluates and integrates certain ESG factors at multiple stages throughout the investment process. This is considered as an important element in contributing towards long-term investment returns and an effective risk-mitigation technique.

The Investment Manager believes its ESG-related research capabilities can help enhance portfolio relative performance, particularly in reducing exposure to countries, industries, and securities with material negative ESG risks. For more details on how ESG factors are integrated into the investment process please refer to http://www.daltoninvestments.com/sustainable-investment-philosophy/.

In accordance with the Taxonomy Regulation, an underlying investment of the Sub-Fund shall be considered as environmentally sustainable where its economic activity: (i) contributes substantially to one or more of the Environmental Objectives; (2) does not significantly harm any of the Environmental Objectives, in accordance with the Taxonomy Regulation; (3) is carried out in compliance with minimum safeguards, prescribed in the Taxonomy Regulation; and (4) complies with technical screening criteria established by the European Commission in accordance with the Taxonomy Regulation. It should be noted that the “do no significant harm” principle applies only to those investments underlying the Sub-Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this Sub-Fund do not take into account the EU criteria for environmentally sustainable economic activities.

The Sub-Fund does not presently intend to be invested in investments that contribute to environmentally sustainable economic activities in accordance with the Taxonomy Regulation but may have incidental investment in Taxonomy aligned investments. Therefore, for the purpose of the Taxonomy Regulation, it should be noted that at any given time, the Sub-Fund may be invested in investments that do not take into account the EU criteria for environmentally sustainable economic activities.

Please refer to the section of the Prospectus entitled “Sustainable Finance Disclosure” for further information.

The Sub-Fund does not have the SRI label.

Overview

Dalton Asia Pacific Strategy Overview

The Dalton Asia Pacific L/S 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 about $2.9bn in assets (as of 31 March 2022), 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 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.

  • 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 (12 analysts 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%
Performance

Performance as of 27/06/2022

NAV MTD YTD LTD
2,025.41€ -3.51% -9.28% 102.54%

powered by Advanced iFrame free. Get the Pro version on CodeCanyon.

Past performance is not an indicator of future performance.

Details

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

  • Dalton is strongly convinced that companies with superior ESG practices are symbiotic with their investment philosophy. As such, not only have they become a UN-PRI signatory, they have developed a robust ESG practice, allowing to assign an internal rating to every company considered for investment across a large number of aspects that are expected to participate in the improvement of intrinsic value and further support wealth creation for minority shareholders
Fund Facts

Fund Facts

Legal Structure: UCITS Sub-Fund of Irish ICAV
Umbrella Fund: Lafayette UCITS ICAV
Fund Manager: Dalton Investments INC
Passporting: Approved in Germany, Italy, Spain, U.K., Ireland, France, Switzerland, Luxembourg, Belgium, Austria and Liechtenstein
Base Currency: EUR
Other Currency Share Classes: USD, GBP
Liquidity: Daily
Dealing Deadline (Subscription): 1:00 p.m. Irish time 3 Business Days prior to the relevant Dealing Day
Dealing Deadline (Redemption): 1:00 p.m. Irish time 3 Business Days prior to the relevant Dealing Day
Settlement Date (Subscription): 11:59 p.m. Irish time 3 Business Days following the relevant Dealing Day
Settlement Date (Redemption): Within 5 Business Days after the relevant Dealing Day
Key Professionals

Key Professionals

James B. Rosenwald
Portfolio 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.

Shares

Fund Share Class Details

   ISIN codeBBG codeInceptionMgmt FeePerf Fee

Early Bird *

B1EURIE00BFXZM553LDAPB1E ID17.07.20130.75%0.0%

Inst. Seeding

B2EURIE00BFXZM884LDAPB2E ID30.08.20131.00%10.0%

Institutional

B2USDIE00BFXZM777LDAPB2U ID11.08.20201.00%10.0%

Institutional

B2UN USDIE00BKDX3X91LAPUB2U ID25.02.20201.00%10.0%

Institutional

IEURIE00BFXZMK04LDAPUIE ID19.05.20171.50%15.0%

Private Wealth Mgmt

PEURIE00BFXZMN35LDAPUPE ID28.02.20141.50%15.0%

Private Wealth Mgmt

PUSDIE00BFXZMM28LDAPUPU ID28.02.20141.50%15.0%

Retail

AEURIE00BFXZMC20LDAPUAE ID28.02.20142.50%15.0%

Retail

AUSDIE00BFXZMB13LDAPUAU ID14.11.20142.50%15.0%

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

Art. 8 SFDR

Extra-Financial Analysis & SFDR Classification

The Sub-Fund meets the classification of an Article 8 fund as it promotes environmental and social characteristics.

The Investment Manager evaluates and integrates certain ESG factors at multiple stages throughout the investment process. This is considered as an important element in contributing towards long-term investment returns and an effective risk-mitigation technique.

The Investment Manager believes its ESG-related research capabilities can help enhance portfolio relative performance, particularly in reducing exposure to countries, industries, and securities with material negative ESG risks. For more details on how ESG factors are integrated into the investment process please refer to http://www.daltoninvestments.com/sustainable-investment-philosophy/.

In accordance with the Taxonomy Regulation, an underlying investment of the Sub-Fund shall be considered as environmentally sustainable where its economic activity: (i) contributes substantially to one or more of the Environmental Objectives; (2) does not significantly harm any of the Environmental Objectives, in accordance with the Taxonomy Regulation; (3) is carried out in compliance with minimum safeguards, prescribed in the Taxonomy Regulation; and (4) complies with technical screening criteria established by the European Commission in accordance with the Taxonomy Regulation. It should be noted that the “do no significant harm” principle applies only to those investments underlying the Sub-Fund that take into account the EU criteria for environmentally sustainable economic activities. The investments underlying the remaining portion of this Sub-Fund do not take into account the EU criteria for environmentally sustainable economic activities.

The Sub-Fund does not presently intend to be invested in investments that contribute to environmentally sustainable economic activities in accordance with the Taxonomy Regulation but may have incidental investment in Taxonomy aligned investments. Therefore, for the purpose of the Taxonomy Regulation, it should be noted that at any given time, the Sub-Fund may be invested in investments that do not take into account the EU criteria for environmentally sustainable economic activities.

Please refer to the section of the Prospectus entitled “Sustainable Finance Disclosure” for further information.

The Sub-Fund does not have the SRI label.