Bestinvest says
David Gait is an experienced manager who aims to invest in good quality companies with strong balance sheets and sustainable cashflow generation in line with other First State funds. Gait is supported by the first state investment team headed by Angust Tulloch. Positive engagement tilt in the portfolio allows the manager to classify the fund as mid-green. Due to the nature of the investment process this fund has larger allocation to smaller companies than First State Asia Pacific leaders.
From 1st January 2012, the fund was soft-closed to new investors due to capacity constraints, which means the full initial charge will apply to any new investments.
The fund's universe is the Asia Pacific region excluding Japan but including Australasia. The investment process will take account of sustainability themes and issues and requires positive engagement with companies in respect of these. A fundamental bottom up approach is used to selecting stocks, targeting companies that offer sustainable and predictable growth with an emphasis on company cash flow and balance sheet strength. The investment outlook is generally medium to long term and avoids 'momentum' type stocks. The sustainability target is achieved through positive internal screening, external screening (conforming to UN norms) by Ethix of Sweden, with a formal engagement and exit strategy. The fund's mandate means that it will be restricted from investing in some companies, which could impact performance when these are driving the market.