Key Highlights

  • EAFZ is an actively managed complex ETF providing exposure to Asian equities, benchmarked against the MSCI AC Asia ex Japan NR AUD index, and admitted to ASX trading on 8 June 2023.
  • The fund reported net Assets of $36.56 million and 4,496,566 units outstanding, with a management fee of 0.95 percent per annum.
  • Technology is heavily weighted at 60.08 percent of the portfolio, well above the category average of 45.05 percent, while Consumer Cyclical exposure at 5.81 percent sits below the category norm of 14.00 percent.

The Ellerston Asia Growth Fund Complex ETF (ASX:EAFZ) is an actively managed exchange-traded fund that gains exposure to Asian companies through securities listed across a range of regional exchanges, including Hong Kong, China, Taiwan, Korea, India, Singapore, Malaysia, Thailand, the Philippines, Indonesia, Japan, Vietnam, Pakistan and Sri Lanka, as well as securities included in or expected to be included in its benchmark index. Admitted to ASX on 8 June 2023, the fund is categorised under Equity Asia Pacific without Japan and benchmarked against the MSCI AC Asia ex Japan NR AUD index.

The fund's net assets were reported at $36.56 million, with 4,496,566 units on issue and a management fee of 0.95 percent per annum. Risk metrics show a Beta of 1.18 and a Standard Deviation of 26.20, both of which sit above the levels typically associated with more diversified, broad-market Asian equity funds, consistent with the portfolio's concentrated sector positioning.

Sector Tilts and Geographic Spread

EAFZ carries a pronounced overweight to Technology, which comprises 60.08 percent of the portfolio compared with a category average of 45.05 percent. Industrials also stand above category levels at 11.64 percent versus 7.31 percent, while Financial Services at 15.05 percent is modestly ahead of the 14.22 percent category figure. By contrast, Consumer Cyclical exposure at 5.81 percent and Communication Services at 3.71 percent both trail their respective category averages of 14.00 percent and 7.41 percent. The fund reported no allocation to Basic Materials or Consumer Defensive sectors.

On a geographic basis, Taiwan represents the largest country exposure at 30.03 percent, followed by South Korea at 20.29 percent and China at 20.77 percent, the latter below the category average of 32.05 percent. India accounts for 9.63 percent of the portfolio, exceeding the category average of 6.10 percent, while Japan contributes 8.61 percent, a country exposure not typically present in this fund category. Smaller weightings extend to Singapore, the United States, the United Kingdom and Malaysia. Cash represented 5.19 percent of assets, above the 2.38 percent category average, with equities making up the remaining 94.80 percent.

Holdings, Returns and Distributions

The portfolio's top ten holdings account for 54.20 percent of total assets across 44 companies in aggregate. Taiwan Semiconductor Manufacturing leads at 21.96 percent, followed by Samsung Electronics at 9.61 percent and SK hynix at 7.12 percent. DBS Group Holdings, Tencent Holdings, Alibaba Group, HSBC Holdings, China Construction Bank, Advantest Corp and AMMB Holdings complete the remaining top ten positions.

Key Takeaways

EAFZ presents a growth-tilted approach to Asian equity investing, distinguished by its heavy Technology concentration and broader eligible-market mandate spanning multiple Asian exchanges. The fund's above-category cash holding, elevated beta and standard deviation, together with its comparatively higher exposure to Taiwan and lower exposure to China relative to the category average, differentiate its risk and return profile from more conventional index-based Asia ex Japan products.