Bestinvest says
Applying fundamental analysis to selecting stocks, the investment process is largely based on Hugh Young's (Aberdeen's star manager in Asia) conservative and detailed framework to selecting stocks as is the case, to a greater or lesser extent, with all Aberdeen's funds. This process has been less successful with Aberdeen's Pan European funds than elsewhere in Aberdeen's range. As such we have higher conviction in other European funds.
The fund invests principally in companies incorporated in Europe, but may also invest in companies which derive an important proportion of their earnings from European trade or operations. It can also invest European emerging markets. Generally the fund invests in companies with good growth prospects with good fundamentals including a strong balance sheet and shareholder friendly management. Valuation is also very important and a key discipline is to avoid overpaying and generally companies which are cheap in relation to their growth potential. Target companies are visited at least once a year whilst companies in which Aberdeen invest are visited at least twice annually. Stocks are sold following a change of personnel, a loss of business direction, or when the European team feel valuations have become stretched.