Lincoln Far East Trust benefits from exposure to Thailand and Taiwan

Investors in the Lincoln Far East Trust are capitalising on recent political and economic changes in the region and benefiting from considerable returns due to events such as the end of military rule in Thailand and the positive election outcome in Taiwan.

Nigel Bliss, Senior Portfolio Manager of the Lincoln Far East Trust at Mondrian Investment Partners comments: "Improving political and economic relations between China and Taiwan could create significant multi-year benefits for Taiwan businesses and its economy. The Far East Trust remains overweight in Taiwan to capture some of these opportunities. Holdings in select companies in markets such as Taiwan and Hong Kong also provide investors with cheaper and less risky indirect exposure to Chinese economic growth."

Strong-performing stocks include companies such as the Taiwanese firm President Chain Stores, which runs over 4,600 food stores on the island, and Thailand's 'Land & Houses', a property developer. Country allocation for the trust is overweight in Taiwan, Hong Kong, Korea and Thailand, and underweight in China and India, two countries which the trust's managers still consider to be overvalued. In terms of sector allocation, financials, information technology and telecommunications services continue to dominate.

Will Hale, Head of Distribution at Lincoln Financial Group comments: "We believe the Asia Pacific region will continue to present good value compared to the developed world and, as domestic demand is increasing, this naturally helps to support these economies. Emerging markets are better placed than they have been historically to withstand a downturn in the developed world.

Considering the recent market conditions, the defensive qualities of the fund are really adding value for investors at the moment. The trust has significantly outperformed its peers over the last six months since markets became more volatile and Mondrian's consistent and highly disciplined investment process is ideal in the current economic environment."

For more information or to purchase a Lincoln fund, visit us at lutm.co.uk.