Asia ex-Japan Equity

Paying the right price relative to quality

Reasons to invest


We are price-conscious investors with a focus on buying stocks that are attractively priced relative to value, across the quality spectrum.


We are attracted to stocks that are temporarily out of favour.

Asymmetric payoff

We seek opportunities where we will make more if we are proven right than lose if proven wrong.

ESG integration

We incorporate ESG and engagement into our investment process, drawing on the resources of EOS at Federated Hermes, our leading stewardship team.


Jonathan Pines

We seek an asymmetric return profile, and pay particular attention to the risk of downside in absolute terms

Jonathan Pines, CFA
Portfolio Manager, Asia ex-Japan

Why Asia ex-Japan Equity?

We look for companies priced attractively relative to value. We have a value bias, but invest in both traditionally defined ‘value’ and ‘growth’ parts of the market – as quality companies at higher multiples can also represent good value and can become out of favour. The portfolio exhibits significantly lower price-to-earnings and price-to-book multiples, and a higher dividend yield, than the index.

We are contrarian investors. Often the stocks we buy are attractively priced because news flow has recently been negative and the stocks have underperformed. We stand alone in terms of style versus our top 10 peers by assets under management. As a result, we have a very low correlation with the rest of the fund market.2

2 Source: Morningstar, data as of end of December 2022. Coloured dots represent styles of peers as determined by Morningstar. Peer group selected based on top 10 AUM funds in the Asia ex-Japan Morningstar category.

We aim to invest so that the upside/downside of a position is asymmetric: the upside far outweighing the potential downside. Our larger positions tend to be those with lower risk – we define risk as the permanent loss of capital rather than volatility or divergence from the benchmark.

How we invest

Fundamental, bottom-up process
Risk aware
ESG integration

Investment philosophy

We believe alpha can best be generated by bottom-up analysis: buying companies that are attractively priced relative to their quality.

Investment process

We apply a liquidity and size screen, and filter for companies trading cheaper than expected relative to their quality, reducing the universe of 18,000 stocks down to around 250.

We study financial statements, write reports and project financials. We hold discussions with management, and incorporate ESG analysis. This process filters down our investable companies to circa 100 stocks.

We select 45-60 mispriced stocks, sizing the positions by considering risk. We have an 18-24-month average holding period. We sell when a stock reaches its intrinsic value, our assessment changes or we find a better idea. 

Investment philosophy

Actively invested in Asia and emerging markets

Solutions across the spectrum


1549, 1574
Jonathan Pines
Jonathan Pines, CFA

Lead Portfolio Manager, Asia ex-Japan, Federated Hermes Limited

Sandy Pei
Sandy Pei, CFA

Deputy Portfolio Manager, Asia ex-Japan, Federated Hermes Limited

Badge big

Product information

For the latest performance and vital information – including prices, factsheets, key facts, identifiers and ratings