Bestinvest says
This fund benefits from the experience of Alec Foster, who has spent his entire career in the insurance market. Research is generated internally, leveraging off individual company contacts, and in-house specialist knowledge. Although the fund's performance will be vulnerable to the insurance cycle, it can also be considered as a long term investment. Note investors in this fund are exposed to US dollar currency risk.
The fund's aim is long term capital growth through investment in companies operating in the international insurance sector. Such companies may include, Property/Casualty, Lloyd's vehicles, Re-insurers and Life Assurance companies. The fund can also hold bonds and cash. The manager adopts a bottom up investment style and pays close attention to company value. In depth knowledge of portfolio companies is gained from industry contacts, as well as a short list of firms who specialise in researching the insurance industry. Generally there are four things that the manager considers for a prospective investment: (i) What is the company underwriting; (ii) Are they making an underwriting profit; (iii) Quality of management and (iv) Reserving.