Ellerston Asian Investments (ASX:EAI) was down 1.0% (net) in December versus the MSCI Asia ex Japan (MXASJ) Index which was down 1.6%.

Ellerston aims to have a sustainable dividend policy based on multiple years of profit reserves and the dividend profit reserve as at the end of December 2022 was approximately 11 cents per share.

China outperformed developed markets (DM) during the month and Chinese equities are likely to continue to outperform in the coming months due to a reopening driven boost and policies to stabilise the property sector and support the platform economy.

The top 10 holdings in the portfolio are TSMC (8.4%), Samsung Electronics (6.5%), Tencent (5.8%), Reliance Industries (5.2%), AIA Group (5.1%), DBS Group Holdings (4.4%), Alibaba Group Holding (4.2%), ICICI Bank (3.5%), Kweichow Moutai (3.2%), and China Mengniu Dairy (3.2%).

The geographic allocation is 48.1% in China/HK, 8.3% in South Korea, 15.6% in India, 12.2% in Taiwan, 7.2% in ASEAN and 8.6% in Cash.

The sector allocation is 20.0% in Information Technology, 27.1% in Financials, 15.1% in Consumer Discretionary, 5.8% in Communication Services, 1.3% in Materials, 5.6% in Industrials, 8.1% in Consumer Staples, 2.4% in Health Care, 5.2% in Energy and 8.6% in Cash.