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Lincoln Far East - Downgrade

By MARCEL PORCHERON 02/08/2007

Lincoln Far East - Downgrade by Marcel Porcheron
The Lincoln Far East fund’s performance is characterised by low volatility due to its cautious approach to investing in the region. The strict investment criteria that the team follow to achieve this have led to underperformance in a strongly rising market as Lincoln’s assumptions have remained conservative. We are downgrading this fund’s rating to 3 stars to reflect the management team’s less than pragmatic approach. However, we continue to believe that Lincoln Far East offers more cautious investors a way to invest in an often volatile region, whilst Mondrian’s focus on tangible assets and cash flow generation should lead to outperformance in specific market conditions. These may include difficult operating environment for the region’s companies, falling equity markets and higher equity market volatility.
 
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