Bestinvest says
The team is well resourced with small teams in Singapore and Hong Kong in addition to the main analyst team in Edinburgh. The focus on sustainable earnings growth and high quality business leads to a relatively conservative portfolio that typically offers some downside protection in falling markets whilst still benefiting from rising markets- though the fund may get left behind in strongly rising markets where highly cyclical stocks are favoured.
The manager's investment universe covers companies operating in the Asia Pacific region excluding Japan - this covers China, Hong Kong, Australia, India, Korea, Thailand, Taiwan, New Zealand, Indonesia, The Philippines, Singapore and Malaysia (though note that Australia and New Zealand aren't included in the manager's chosen benchmark, MSCI Asia ex Japan). The manager relies heavily on qualitative analysis and his team's own research and contact network to generate ideas. Sustainability of earnings and earnings growth are key considerations for potential investee companies. The team carries out over 1000 company meetings each year, assessing the company based on Quality, Growth and Price in an effort to identify good companies with growth potential that are being mis-priced by the market.
Qualitative analysis is supported by quantitative analysis of the financial strength of each company.
This research gives rise to a watchlist of around 350 stocks. These stocks will have a clear statement on entry prices as well as review prices to enable the construction of a portfolio of stocks which are trading below their fair value.