Monthly Updates

Antipodes Asia Fund

ARSN 096 451 393 APIR IOF0203AU
MONTHLY REPORT | 31 December 2021


Global equities rebounded in December (+1.4%) with Utilities, Consumer Staples, Health Care and Materials outperforming, whilst Consumer Discretionary, Communication Services and Information Technology underperformed. US equities were up (+1.3%) with Omicron restriction fears easing, strong macro data and high inflation data, whilst the Fed continued it’s more hawkish messaging. European equities outperformed (+4.0%) also with Omicron restriction fears easing and high inflation data, the ECB announced policy tightening with reduced QE and balance sheet reduction while remaining accommodative.

Asian equities underperformed (-1.0%) led by weak Chinese equities (-4.0%) with ongoing headlines concerning ADR listings and regulation, while the People’s Bank of China commenced policy easing. Japan underperformed (-0.6%) with higher inflation and unemployment rising slightly.

Elsewhere, Brent Crude (+12.9% in USD) rebounded, while Gold (+3.1%) rose as a safe haven and the US Dollar (DXY -0.3%) was stable.

Key contributors included:

  • Hardware cluster, notably SK Hynix and Mediatek. SK Hynix pushed higher after announcing the company received merger clearances from the Chinese antitrust authority for the acquisition of Intel Corp’s NAND memory chip business, after early concerns permissions would not be granted. Upon completion of the deal, SK Hynix will take over Intel’s NAND SSD, NAND component and wafer businesses and its NAND memory manufacturing facility in Dalian situated in China’s Liaoning Province.
  • Mediatek continued to benefit from its Dimensity 9000 chip, which was officially released in mid-December with the announcement that smartphone manufacturers Oppo and Xiaomi will begin to equip their new generation handsets with the chip. In addition, Meditek also announced their new Wi-Fi and smart TV chipsets, which were positively received.
  • Larsen & Toubro within the Industrials cluster benefitted from the announcement of numerous contracts during the month, with the Indian construction company awarded tenders across its water treatment and construction arms.

Key detractors included:

  • Internet/Software – Asia/EM cluster including and Meituan. was negatively impacted as Tencent filed to reduce its stake in to approximately 2.3%, down from 17% and will no longer be the largest shareholder. Meituan detracted over the month after delivering softer than expected 4Q guidance citing broader impacts from the COVID-19 re-emergence in China, in addition to weaker investor sentiment towards Chinese internet companies.
  • Consumer Cyclical – Asia/EM cluster, notably and Country Garden Services Holdings. detracted after reporting Q3 revenue was down 9% from the previous quarter after the re-emergence of COVID-19 in China, despite also reporting international flight reservations increased 40% from the previous quarter. Country Garden Services slumped among fears of a liquidity crisis and debt defaults among Chinese property developers and subsequent slower growth for property management companies.

Net performance (%)

Past performance is not a reliable indicator of future performance. Returns are quoted in AUD and net of applicable fees, costs and taxes. All p.a. returns are annualised.

Performance & risk summary 1

1 All metrics are based on gross of fee returns in AUD terms. The upside/downside capture ratio is the percentage of benchmark performance captured by the fund during months that the benchmark is up/down. Standard deviation is a measure of risk with a smaller figure indicating lower return volatility. The Sharpe ratio measures returns on a risk adjusted basis with a figure > 1 indicating a higher return than the benchmark for the respective levels of return volatility.

Performance contribution2 (%)

Asia 31 Dec 2021 27 Feb 2022 POSITION Long -2.7%
Asia 31 Dec 2021 27 Feb 2022 POSITION Short -0.2%
Asia 31 Dec 2021 27 Feb 2022 POSITION Currency -0.3%

2 Based on gross returns in AUD

Top & bottom sector contribution2,3 (%)

3 Antipodes classification

Fund Facts

wdt_ID Characteristics -

Antipodes Asia Fund

Asset allocation4

4 Call (put) options represented as the current option value (delta adjusted exposure)

Sector exposure4,5 (%)

5 Antipodes classification

Top 10 equity longs4 (%)

Name Country Weight
Taiwan Semiconductor Taiwan 9.3
Tencent China/HK 9.2
Meituan China/HK 7.5
ICICI Bank India 4.7
SK hynix Korea 4.7 China/HK 4.7
Wuliangye Yibin China/HK 4.3
KE Holdings China/HK 4.3
Samsung Electronics Korea 3.9
MediaTek Taiwan 3.5

Currency exposure4,6 (%)

6 Where possible, regions, countries and currencies classified on a look through basis

Regional exposure4,5,6 (%)

Market cap exposure4 (%)

Band Long Short Net
Mega (>$100b) 48.3 -1.5 46.8
Large (>$25b <$100b) 24.8 -1.3 23.5
Medium (>$5b <$25b) 17.5 0.0 17.5
Investment Manager

• Global pragmatic value manager, long only and long-short
• Structured to reinforce alignment between investors and the investment team
• We attempt to take advantage of the market’s tendency for irrational extrapolation, identify investments that offer a high margin of safety and build portfolios with a capital preservation focus

Fund features

  • Objective to achieve absolute returns in excess of the benchmark over the investment cycle (typically 3-5 years)
  • The fund may invest in companies that are listed:
    • On Asian share markets
    • On global share markets and which derive >65% of their
      revenues from Asia
    • In Japan (maximum 30% net exposure)
    • In Oceania and non-Asian emerging markets (maximum 15% net exposure)
  • In the absence of finding securities that meet minimum risk-return criteria, cash may be held
  • Flexibility to hedge for risk management purposes:
    • Equity shorts and currency positions used to take advantage of attractive risk-return opportunities, offset specific long portfolio risks and provide some protection from negative tail risk. Derivatives may also be used to amplify high conviction ideas
    • Typical net equity exposure of 50% to 100%; maximum gross exposure of 150% of NAV
Fund Ratings

Further information

1300 010 311

Australia Head Office

Antipodes Partners Limited
Level 35, 60 Margaret St
Sydney NSW 2000

UK Office

Antipodes Partners Limited
6th Floor, Nova North
11 Bressenden Place
London SW1E 5BY UK


This communication is prepared by Antipodes Partners Limited (‘Antipodes’) ABN 29 602 042 035 AFSL 481580 as the investment manager of the Antipodes Asia Fund (ARSN 096 451 393) (‘the Fund’). Pinnacle Fund Services Limited ABN 29 082 494 362 AFSL 238371 (‘PFSL’) is the product issuer of the Fund. PFSL is not licensed to provide financial product advice. PFSL is a wholly-owned subsidiary of the Pinnacle Investment Management Group Limited (‘Pinnacle’) ABN 22 100 325 184. The Product Disclosure Statement (‘PDS’) and Target Market Determination (‘TMD’) of the Fund is available at Any potential investor should consider the PDS and TMD before deciding whether to acquire, or continue to hold units in, the Fund.

This communication is for general information only. It is not intended as a securities recommendation or statement of opinion intended to influence a person or persons in making a decision in relation to investment. It has been prepared without taking account of any person’s objectives, financial situation or needs. Any persons relying on this information should obtain professional advice before doing so. Past performance is for illustrative purposes only and is not indicative of future performance. Options exposure represents the market downside. For put options (typically used to limit potential downside) delta-adjusted exposure is used and for call options (typically used to capture potential upside) exposure is calculated using the current option value. Unless otherwise specified, all amounts are in Australian Dollars (AUD).

Whilst Antipodes, PFSL and Pinnacle believe the information contained in this communication is reliable, no warranty is given as to its accuracy, reliability or completeness and persons relying on this information do so at their own risk. Subject to any liability which cannot be excluded under the relevant laws, Antipodes, PFSL and Pinnacle disclaim all liability to any person relying on the information contained in this communication in respect of any loss or damage (including consequential loss or damage), however caused, which may be suffered or arise directly or indirectly in respect of such information. This disclaimer extends to any entity that may distribute this communication.

Any opinions and forecasts reflect the judgment and assumptions of Antipodes and its representatives on the basis of information available as at the date of publication and may later change without notice. Any projections contained in this presentation are estimates only and may not be realised in the future.

Unauthorised use, copying, distribution, replication, posting, transmitting, publication, display, or reproduction in whole or in part of the information contained in this communication is prohibited without obtaining prior written permission from Antipodes. Pinnacle and its associates may have interests in financial products and may receive fees from companies referred to during this communication.

The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned Antipodes Asia Fund – November 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.

The Lonsec Ratings (assigned March 2021) presented in this document are published by Lonsec Research presented in this document are published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Ratings are limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial products. Past performance information is for illustrative purposes only and is not indicative of future performance. They are not a recommendation to purchase, sell or hold Antipodes products, and you should seek independent financial advice before investing in these products. The Ratings are subject to change without notice and Lonsec assumes no obligation to update the relevant documents following publication. Lonsec receives a fee from the Fund Manager for researching the products using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to our website at: