The Company’s investment objective is to provide shareholders with capital and income growth from a diversified portfolio of investments in the Asia Pacific region, which is designed to outperform the MSCI AC Asia Pacific Free Index (“MSCI Index”) in sterling terms. The MSCI Index is the Company’s benchmark, a standard against which the performance of the investment portfolio can be measured.
The Board monitors success in implementing the Company’s strategy against a range of Key Performance Indicators (“KPIs”), which are viewed as significant measures of success over the longer term. Although performance relative to the KPIs is also monitored over shorter periods, it is success over the long term that is viewed as more important, given the inherent volatility of short-term investment returns. The principal financial KPIs are set out below:
- Net Asset Value total return and total shareholder return. Long-term outperformance of the combined portfolios compared with the benchmark is a key objective.
- Investment performance by the individual portfolio managers. Outperformance relative to the benchmark is sought.
- Annual growth in the dividend.The Company’s aim is to deliver increases in real terms, ahead of UK inflation (subject to market circumstances).
- Discount to Net Asset Value. The objective is to avoid excessive fluctuations in the discount and avoid a discount which is anomalously wide compared with other trusts investing in the region by the use of share buy-backs, subject to market conditions.
- The level of ongoing charges. Costs are managed with the objective of delivering an ongoing charges figure of below 1% (excluding performance fees). Where higher charges arise, these are carefully evaluated to ensure there is a net benefit for shareholders.