Bestinvest says
Martin Lau has a successful track record managing money in this region, having previously been responsible for Greater China mandates at Invesco. Historically, the manager proved his ability to consistently add value above the benchmark with lower levels of volatility than regional benchmarks and better downside protection. Lau is supported by a strong investment team at First State and benefits from the proprietary research performed by other fund managers at the company. The fund does not cover the whole of the Asia Pacific region, although still offers some diversification compared to a single country fund. 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, so it is no longer our top pick in the region.
This is a fairly concentrated portfolio, benchmarked for reference purposes only against the MSCI Golden Dragon Index. The fund is constructed on a bottom up basis, targeting companies that are investor friendly, have sound business models, strong franchises and a management track record. Financial criteria include growth in earnings and return on equity at a reasonable price. Company visits are considered to be an essential part of the investment process and the team are locally based. The manager's investment style emphasises high conviction levels on all stocks within the portfolio - there are no positions held for relative benchmark risk purposes. Historically, Martin Lau's Greater China portfolios have demonstrated lower levels of volatility than regional benchmarks and better downside protection.