This fund benefits from an experienced manager with an absolute return mindset to investment. The fund offers a more cautious approach to investment in developing countries, with a focus on high quality, shareholder friendly companies. Stock research is conducted by a large and well resourced team based in Edinburgh, Hong Kong and Singapore that includes former manager Angus Tulloch. The manager is also open to accessing emerging markets via companies listed in developed markets, enabling him to take advantage of valuation anomalies.
The manager's investment universe covers companies operating across the emerging markets, including Asia, Latin America, Eastern Europe, Africa and the Middle East. The manager relies heavily on qualitative analysis and his team's own research and contact network to generate ideas. Sustainability of earnings and earnings growth are key considerations for potential investee companies. The team carries out over 1000 company meetings each year, assessing the company based on Quality, Growth and Price in an effort to identify good companies with growth potential that are being mis-priced by the market. Qualitative analysis is supported by quantitative analysis of the financial strength of each company. This research gives rise to a watchlist of around 350 stocks. These stocks will have a clear statement on entry prices as well as review prices to enable the construction of a portfolio of stocks which are trading below their fair value.