Perinvest: October Update

Perinvest is an independent manager focused on alternative strategies. The firm was founded by Jean Perrette (he was an early investor in Soros Fund Management) in 2001 and offers a family of single manager funds, multi manager products and bespoke portfolio management.

The firm currently has an Asia Dividend Equity Fund, which invests primarily in high yield Asian equities. It aims to provide investors with “an annual dividend yield of 5%, augmented by capital gains, with the objective of outperforming the MSCI Asia ex-Japan TR Index over the long term.” The fund has been managed since inception by James Morton, who is the CIO and portfolio manager of Singapore-based Santa Lucia Asset Management.

Here is the link to the fund’s update for October. In terms of geographic allocation, the portfolio remains heavily weighted towards Hong Kong (~50%). It also has a significant allocation to the real estate and consumer sectors, which currently comprise ~54% of the portfolio. The fund’s 36 current positions have an average P/E ratio of 7x, P/B of 0.8x and a gross dividend yield of 6.1% (the MSCI Asia ex-Japan is at 15x, 1.5x and 2.6% respectively).

The letter provides updates on a number of current holdings including Skyworth Digital, Qingdao Port, Filinvest and Bank Jatim. It also includes commentary on recent government policy in the Chinese property sector and the likely impact on mainland developers.