Bestinvest says
Applying fundamental analysis to selecting stocks, the investment process is largely based on Hugh Young's (Aberdeen's star manager in Asia) conservative and detailed framework to selecting stocks as is the case, to a greater or lesser extent, with all Aberdeen's funds. This process has been less successful in the UK than elsewhere in Aberdeen's range so we have higher conviction in other UK All Companies funds.
James Laing works closely with Aberdeen's Pan European Equity team in investing in UK equties. A theoretical universe covering all UK equities is narrowed to an Aberdeen universe of around 200 using a quality filter, which attempts to identify companies with good growth prospects, the balance sheet to support expansion and which are run in the interests of shareholders. A secondary filter is then used to assess companies' valuations relative to market price and to the value of their peers. A key discipline in this stage of the process is to avoid overpaying. Companies that pass the second stage are placed on a watch list and the management of these companies are visited at least once a year whilst companies in which Aberdeen invest are visited at least twice annually. Stocks are sold following a change of personnel, a loss of business direction, or when Aberdeen feel valuations have become stretched.