Pangolin Investment Management oversees the Pangolin Asia Fund, a Southeast Asia-focused long-term value fund that conducts in-depth research on businesses, including visiting them, to determine whether they are wise investments.
The fund, headquartered in the Cayman Islands, kicked off in December 2004. It is overseen by the Monetary Authority of Singapore (MAS), which guarantees adherence to regional financial laws.
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This post will focus on the following points:
- Pangolin Asia Fund background
- Pangolin Asia Fund investment
- Pangolin Asia Fund fees
- Pangolin Asia Fund performance
- Advantages and disadvantages of Pangolin Asia Fund
What is Pangolin Asia Fund?
Singapore-based Pangolin Investment Management, the investment manager, is also regulated by the MAS.
The Pangolin Asia Fund targets long-term growth by making investments in undervalued firms. Prior to investing, it looks into a company’s financial standing, competitive position, and room for expansion.
The fund primarily draws large investors such as endowments and pension funds, as well as wealthy individuals and family offices who all favor long-term investments.
James Hay is one of the professionals who oversee the fund. Hay has been involved in the Asian financial markets since 1986.
Pangolin Fund Investment
This fund intends to hold investments for three to five years, but if the value increases sufficiently, it may sell earlier. Rich investors who wish to make diverse investments are the target market.
The fund typically invests in 4 to 30 businesses in order to strike a good balance between variety and focus. The minimum investment amount to join the fund each month is 200,000 US dollar.
Pangolin Asia Fund Fees
Redemptions are permitted every three months with a sixty-day notice period. A 2% redemption charge is assessed for early exits within a year, and a 10% gate may be applied to control liquidity.
A yearly management fee of 1.5% is charged by the fund that’s settled every month.
A 15% performance cost on net asset value gains over the high watermark is also in place to encourage the manager to produce steady growth.
Pangolin Asia Fund Performance
Recent years have seen uncertainty and recovery in the Pangolin Asia Fund performance.
The fund experienced difficulties throughout the pandemic, finishing the year with a performance of -7.80%.
It recovered well with a year-to-date return of 31.44% in 2021, proving its capacity to take advantage of market opportunities.
The fund again suffered a setback in 2022 with a -9.23% year-to-date decline.
In 2023, the fund rebounded and witnessed a positive YTD 8% return.
Meanwhile, YTD negative performance in 2024 stood at -3.75%.
Going further back, the global economic downturn in 2008 caused a considerable drop of -38.81%.
The fund’s best performance occurred in 2009 when it yielded an astounding 95.34%, indicating a robust recovery following the financial crisis.
Pros and cons of Pangolin Asia Fund
A seasoned group with a wealth of knowledge in Asian markets handles the fund.
The fund focuses on Southeast Asian small- and medium-sized businesses, which might have more room for expansion.
The fund has seen significant volatility, including sharp drops in 2008 and 2022. It also dropped -3.75% just recently in 2024.
The fund mostly makes investments in smaller businesses, which may cause liquidity problems when positions are bought or sold and may have an effect on market prices.
The fees may be expected of actively managed funds, but the Pangolin Asia Fund may have higher fees versus passive investment options. The performance and management fees may also raise overall expenses.
Those investors who need liquidity or want to withdraw their money quickly may also be turned off by the early redemption fee.
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