Bestinvest says
Run from her office in Hong Kong, the fund's manager Henrietta Luk, has set herself ambitious targets for this fund and as such investors should be aware limiting downside risk from a concentrated portfolio of equities is no easy task. In addition the focused nature of the portfolio will mean that bad decisions will have a far greater impact than for more conservative peers. So far this approach has not led to less risk relative to the fund's benchmark. Therefore it should only be considered by higher risk investors as a smaller part of a large portfolio.
The manager adopts a non benchmark driven approach to Asian stock selection, with a focus on undervalued and under researched small and mid cap stocks. Large caps can be feature in the portfolio if they present an attractive opportunity and to dampen overall portfolio volatility. The manager is prepared to rotate the portfolio aggressively if it is not performing as expected.
The manager has invested in a variety of different companies although typical investments are characterised by their growth potential where strong management track records are targeted, niche products or businesses and barriers to entry. Stocks can be assessed on a number of different metrics, although most are held for their earnings growth potential.
Regional and sector allocation is primarily a reflection of stock selection, but the manager will seek to diversify the fund by geography and sector.
The manager controls risk at the stock level by focusing on company fundamentals and businesses with a stable operating environment.
The fund will not invest in Japanese, Australian and Indian equities.