Bestinvest says
Aberdeen’s Global Equities Team have a successful track record on the Aberdeen World Equity fund dating back to 2002, skilfully navigating the banking crisis whilst other global funds faltered. The fund has also demonstrated remarkable risk controls given its concentrated, unconstrained nature. Bestinvest have now met a number of the team which gives us confidence of their strength and depth; the fund also benefits from the input of Aberdeen’s regional teams. However, it has a high degree of commonality with Aberdeen's regional funds so investors should exercise caution before holding them in the same portfolio.
Aberdeen’s Global Equities team select stocks exclusively from a 330 strong buy list of stocks already held by Aberdeen’s regional equity teams. Portfolio companies thus share the characteristics of other Aberdeen portfolios: straightforward businesses with quality management, recurring earnings and strong balance sheets. The global team compare companies on the buy list across regions and sectors to find valuation anomalies. They have access to the research of their regional analysts and largely rely on them to carry out company visits. The team takes a five year view on stocks so portfolio turnover is typically low. Stocks are sold when they become overpriced or when they are sold from regional portfolios. Bottom up stock selection and diversification guide geographical and sector weights, though the team's macroeconomic view provides what they describe as a common sense check on risks to the fund. No currency hedging is undertaken, though the managers take account of the currency positions of portfolio companies.