To generate capital growth primarily by investing in companies operating in the Asia Pacific Ex-Japan region.
With anomalies as a start point, the investment process seeks to identify and invest in key ‘themes’ in the Pacific region. Companies are identified and chosen via rigorous bottom-up analysis with emphasis on traditional value and high ROCE.
- Themes are specific industries we have identified, which have a clear set of growth drivers, which have minimal reliance on the economic cycle, and are not yet discounted by the market.
- Our past experience and track record shows that being invested in robust themes significantly reduces fund volatility, generates strong out-performance and provides good protection and sometimes even positive returns during weaker periods.
- Our thematic approach also means the fund has long horizons and successful themes often work for a long time.
- We believe how we pick themes and the degree to which we find them ahead of market discovery, sets us apart from our peer group.
- Our stock selection process is driven by a search for niche excellence, value, strong cash flow and a foreseeable and deliberate improvement in ROE and we feel this has proven successful over several cycles.
- When we do not find undiscounted value and quality, we will hold some cash, usually capped at 10%, until such opportunities arise.