Edinburgh Dragon – An artificial reality?
Edinburgh Dragon Trust (EFM) is the largest and one of the most easily tradeable investment companies in the AIC’s Asia ex Japan sector. The fund manager aims to buy high-quality companies at attractive valuations – an approach that has been applied consistently for many years. The manager believes that the policies of central banks and governments have created an artificial environment where market valuations are no longer based on reality and that EFM’s performance, relative to market indices, has suffered as a result. They believe however that this situation is transient and, as things return to normal, EFM’s portfolio will benefit and its performance will see a return to form.
Over the past few months market volatility has picked up but so has government intervention in financial markets. For example, Japan has adopted a negative interest rate policy and China has been buying equities to shore up its stock market. Many commentators are questioning the long-term effectiveness of these measures. EFM suggests the best hope for benefiting from a normalisation of markets is investing in companies that will prosper in such a situation.
Edinburgh Dragon – An artificial reality?
Edinburgh Dragon aims to achieve long term capital growth through investment in the Far East. The company’s benchmark index is the MSCI All Country Asia (ex Japan) Index. Investments are made in stock markets in the region, with the exception of Japan and Australasia, principally in large companies. When appropriate, the trust will utilise gearing to maximise long term returns.
You can access the fund’s website here
EFM : Edinburgh Dragon – An artificial reality?