Bank Central Asia

As far as banking in emerging markets goes, Bank Central Asia (BCA) is as close as one gets to the “gold standard” – excellent management and impeccable execution in a fast-growing market. This additional exposure to Indonesian banking (the Fund also owns Bank Mandiri) brings the combined total exposure to 3.5%. Although BCA trades at a premium to Mandiri, the absolute forward PE multiple of 16x is amongst the lowest it has been in the last decade, and the long-term outlook remains very attractive. BCA’s superior execution has seen it deliver Returns on Assets that are best in class.

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