Bestinvest says
This portfolio is managed for total return investing in the Asian equities including Japan and Australasia. Parks seeks to gain the correct asset split through a thorough study of the macroeconomic situation. This determines his overall views for each of the countries represented within the portfolio. The manager uses the tried and tested methods of P/E and P/Book ratios for stock valuation following a pragmatic approach to investment. The fund has been outperforming its benchmark consistently over the years, although is unlikely to greatly differ from the benchmark.
The investment process initially focuses on macro economic trends and in particular liquidity conditions that shape the environment for equities and the first consideration is the allocation of the fund between Japan and the rest of the Pacific region. This macro focus in turn provides a reference for determining the fund's exposure to growth or value type companies and small versus large cap stocks. Broadly positive liquidity conditions favour growth companies, whilst poor liquidity conditions favour stocks with more defensive characteristics which offer the prospect of greater capital protection.
Stock selection focuses on the earnings growth rate implied by valuations, earnings transparency and cash flow. The fund will always have a reasonable weighting to the technology and financial sectors as a result of their large weighting within the index.