A Guide to Singapore Funds

guide to singaporefunds

Contents4 the benefits of diversification

5 aberdeen

5 aberdeen asia

6 aristotle

6 artemis

7 artisan partners

8 aXa framlington

9 Babson Capital

9 Blackrock

11 Burgundy

12 edgepoint

12 first state

13 invesco perpetual

14 J o Hambro

14 Loomis sayles

15 Magellan

15 Majedie

17 Manulife

18 rWC

18 sands Capital

19 schroders

20 select equity

20 s. W. Mitchell Capital

21 threadneedle

22 tweedy, Browne

23 Wasatch

24 Wellington Management

24 Woodford

25 our range of funds and charges

26 special risk factors

the benefits of diversificationBy selecting a number of leading fund managers, each with their own distinctive investment styles, we are able to provide our clients with real diversification of risk.

Many of our clients invest in our growth and income portfolios, which include a wide range of different managers and asset classes and are designed to match investment objectives and differing risk profiles.

in conjunction with their st. James’s place partner, more experienced investors can create their own portfolios to fulfil specific needs by spreading their investment across our range of funds. You can switch between funds and fund managers, usually at no charge, so that your money is always invested in a way that is appropriate for your own financial goals. all our funds are available as standalone funds.

We offer you what we believe is a superior investment process designed to help maximise your chance of achieving a better return over the medium to long term.

the next step is for you to talk to your st. James’s place partner about putting into place your own wealth management strategy.

Here you will find a summary of the funds available, together with their objectives, and details of the investment companies who manage those funds and their investment styles. We hope this will help you choose the right manager, or managers, for your investment.

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aberdeen asset Management is the holding company for an asset management group managing equity, fixed income and property, principally for state and corporate pension funds, global financial institutions and discretionary managers.

the company was formed in 1983 via the management buyout of an investment management contract for a small investment trust. over the years aberdeen has expandedthrough a combination of acquisition and organic growth.

SRI Philosophy

the socially responsible investment (sri) or ethical mandates, managed by aberdeen, exceed £900 million. the sri team is a specialist part of the global equity team, based in edinburgh and headed by stephen docherty.

the group began managing sri products in the early 1990s. the sri screening service has expanded to include engagement with companies on environmental, social and corporate governance (esg) issues.

Corporate governance issues have long been examined at the first stage of the investment process and are included in a quality rating. environmental and social factors are also examined by aberdeen’s regional teams before investment is made in a company.

aberdeen discusses with companies the manner in which they are run and operate in the greater community.

this is called ‘engagement’. they use engagement to monitor a company’s social behaviour and its impact on financial matters; and when necessary encourage companies to be better corporate citizens.

Jamie Cumming

Jamie Cumming is a senior investment manager on the global equity team. Jamie joined aberdeen via the acquisition of edinburgh fund Managers in 2003

where he was an investment manager on the Japanese equities team. previously, Jamie worked for grant thornton Chartered accountants and is a member of the institute of Chartered accountants in scotland.

Stephen Docherty

stephen docherty is Head of global equities, managing a team of 11 who are responsible for aberdeen’s overall strategy towards global equity investment,

including ethical portfolios. stephen joined aberdeen in 1994, successfully establishing performance measurement procedures before taking up a fund management role.

• Selective stock-picking approach• Seek companies offering ‘growth at a reasonable price’• Hands-on company research – over 1,000 visits annually• Ethical funds screened for green criteria

Portfolio style

A B E R D E E N

Asia Investment Philosophy

aberdeen believes, given the inefficiency of markets, that superior long-term returns can be achieved by identifying good quality stocks cheaply and holding for the long term. they identify good companies from firsthand research, and add value from active management, which comprises intensive and ongoing scrutiny at the company level, and not from portfolio trading.

aberdeen asia has been investing in asia since 1992 from its headquarters in singapore. it also has investment centres in Hong Kong, Bangkok, Kuala Lumpur, tokyo and sydney, and distribution centres in Korea and shanghai.

Hugh Young

Hugh set up the singapore office in 1992 as the group’s Asia–Pacific headquarters. He is also head of equities globally and a member of the executive committee

responsible for the day-to-day running of the parent company.

Hugh has over 30 years’ experience in investment management and has managed the group’s asian assets since 1985, including award-winning mutual funds and

closed-end funds. Before joining Aberdeen, his career included posts at fidelity international and MgM assurance. He graduated with a Ba in politics from the university of exeter.

• Face-to-face company visits• Conduct own proprietary research: do not rely on local

research or brokers for company information• Golden rule of never investing in a company without

having met management first• Bottom-up stock-pickers with a careful stock selection

process• Look for well-researched, quality companies • Long-term, buy & hold approach to investing• Benchmark-aware, not benchmark-driven

Portfolio style

A B E R D E E N A S I A

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Aristotle strongly believes that long-term outperformance is only possible through concentrating on finding the best ideas and not closet index tracking. The long-term investment results are driven by a desire to generate competitive returns in rising markets and greatly outperform in flat to down markets.

Howard Gleicher

prior to founding aristotle, Howard was co-founder, CEO and Chief Investment officer at Metropolitan West Capital Management. Howard’s prior investment-

related experience also includes serving as a principal, portfolio Manager and investment policy Committee member at Palley-Needelman Asset Management, and as an equity portfolio Manager at piMCo.

companies paying dividends have been more stable and a more reliable source of total return than pure growth stocks.

the primary focus of the income strategy is the strength and magnitude of the free cash flow of a business and its ability to pay and grow dividends over time. the investment philosophy is based on the premise that the value of equity is the present value of its future cash flows i.e. what a company will, over time, give back to investors. the managers are intent on buying the best-value free cash flow they can find. Ordinarily this cash flow will be evident by way of an above-average equity or bond yield. on occasion they will purchase a stock offering attractive cash flow with a view to securing future dividend growth.

the focus on free cash flow rather than actual levels of dividend yield means that they can consider investing in a broader universe of stocks than a typical income fund. the ability to allocate capital to overseas equities and bonds allows artemis to exploit a larger opportunity set. they recognise the importance of delivering a portfolio with a yield premium.

aristotle is an independently operated investment management company, based in Los angeles, usa. it was established in 1940. the company had traditionally concentrated on managing funds for a few wealthy individuals, before turning its attention to the institutional market in the late 70s.

Investment Philosophy

The investment philosophy is a traditional value-oriented approach, driven by an internally generated research resource. the company’s research is focused on the valuation of individual securities rather than prediction of economic or market trends.

the process attempts to identify exceptional businesses selling at reasonable valuations, and reasonable businesses selling at exceptional valuations. a careful analysis of return on capital or economic value generation is the main driver in determining what makes a business valuable, while a discounted cash flow methodology is the primary valuation tool.

the goal is to consistently outperform the major value indices as well as the major market indices over a market cycle.

artemis investment Management Limited was established in 1997 as a dedicated active investment management house specialising in growing the money of retail investors. they wanted to create a company that could offer investors superior returns and service, as well as being a progressive and vibrant place to work.

since the launch of the first funds in 1998, the company’s success has meant it now manages an asset base of more than £19 billion and has become one of the leading fund management groups in the uK.


artemis believes that regardless of market conditions, active managers can achieve superior returns provided they possess the skill, judgement and confidence necessary to identify and exploit market inefficiencies. portfolios are managed with an absolute mindset meaning that portfolio managers only buy a share when they believe it to be undervalued, not because it represents a significant proportion of the index. Historically,

• Universe of stocks comprises US companies with a market cap of at least us$100 million

• A combination of quantitative and qualitative research identifies cheap or high-return stocks

• Structured approach to portfolio construction• Concentrated portfolio of around 25–35 stocks

• Fund managers responsible for own analysis• Stock weightings a function of valuation, not benchmark• Well-diversified portfolio

Portfolio style

Portfolio style

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A R I S t o t l E

A R t E m I S

Adrian Gosden

adrian manages the artemis income strategies, a range of pooled unit trusts and segregated accounts. adrian has over 15 years’ industry experience. prior to

joining artemis, adrian was a uK equity fund manager at société générale asset Management where he managed the uK income fund and several income mandates for institutional and charity clients. He was previously an equity analyst and strategic consultant at fleming investment Management and anderson Consulting respectively. Hegraduated from st Hugh’s College, oxford.

Adrian Frost

adrian manages the artemis income strategies, a range of pooled unit trusts and segregated accounts. He has over 25 years’ experience in investment

management. prior to joining artemis, adrian was Head of uK equities at deutsche asset Management where he managed a team of 40 investment managers and was responsible for some £5 billion of funds, including the uK equity income fund. adrian graduated from Jesus College, Cambridge.

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balance sheets helps to reduce the potential for capital risk and provides company management with the ability to build value when attractive opportunities are available.

Shareholder-oriented managementthe team’s research process attempts to identify management teams with a history of building value for shareholders.

Dan o’Keefe

dan is a managing director of artisan partners and lead portfolio manager for the firm’s global Value portfolios and portfolio co-manager for the firm’s non-

us value portfolios. prior to joining artisan partners, Mr o’Keefe was an analyst in international equities at Harris associates Lp, from July 1997 to May 2002. Before that, he was an associate in mergers and acquisitions at Bancamerica securities from february 1995 to July 1997, and was an analyst with Morningstar from June 1993 to february 1995. Mr o’Keefe holds a Ba from northwestern university.

David Samra

david is a managing director of artisan partners and portfolio manager for the firm’s global Value portfolios and lead portfolio manager for the firm’s non-US

value portfolios. prior to joining artisan partners, Mr samra was a portfolio manager and a senior analyst in international equities at Harris associates Lp, from august 1997 to May 2002. Before that, he was a portfolio manager with Montgomery asset Management, global equities division from June 1993 to 1997.

Artisan Partners LP is an independent, multi-product investment management firm founded in 1994 that manages over us$112 billion in assets. Based in Milwaukee, it has offices in san francisco, atlanta and new York.

since its foundation, artisan partners has hired experienced investment professionals to manage client assets. these individuals, all owners or expected to become owners in the firm, are dedicated to each of the firm’s investment strategies, bringing clients the benefits of focused investment management.


Artisan Partners employs a bottom-up investment process to construct a diversified portfolio of securities of undervalued US and non-US companies. The strategy’s investment process is focused on identifying what artisan partners considers to be high-quality, undervalued businesses that offer the potential for superior risk/reward outcomes.

Global Value

dan o’Keefe and david samra’s research process focuses on four key investment characteristics:

Valuationit is the team’s core belief that intrinsic value is the most crucial determinant of stock market return over the long term.

Business qualitythe team seeks to invest in companies with a history of generating strong free cash flow, improving returns on capital and strong competitive positions.

Financial strengththe team believes that investing in companies with strong

• Typically hold between 30 and 50 stocks• Companies must have a market cap of US$2 billion at the

time of purchase• Valuation is the most crucial determinant of stock

market return

Portfolio style

A R t I S A N PA R t N E R S

New investment into the Global managed fund will be channelled to James Hamel of Artisan’s Global opportunities strategy. Please see overleaf.

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James Hamel

James is a managing director of artisan partners. Based in Milwaukee, he is a portfolio manager in their growth team and one of its founder members. Within

the team, he is the lead portfolio manager for the artisan Global Opportunities Fund and the small-cap growth strategy. prior to joining artisan partners in 1997, James was a financial associate, cost analyst and operations manager of Kimberly-Clark Corporation from 1990 to 1997.

Global opportunities

Whilst also looking to invest at a discount, James Hamel has more of a growth bias and seeks to invest in companies with franchise characteristics that are benefiting from an accelerating profit cycle and which have defensible competitive positions. His portfolio will typically have 30–50 positions, with an emphasis on mid- and large-cap global businesses.

His maximum holdings are 35% in any country other than the us, 25% in any industry and 10% for any stock. us companies must have market capitalisation of at least US$3 billion; there is no minimum for non-US companies.

He will sell when: stocks are approaching full valuation; or there is a change affecting the original thesis; or in the event of deteriorating fundamentals; or when more attractive alternatives are identified.

• Finds growth where it exists globally• Global mid- to large-cap emphasis• No minimum market cap for non-US companies

Portfolio style

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A R t I S A N PA R t N E R S c o n t i n u e d

and benefits from a blend of experience and specialist expertise from aXa framlington’s investment department.

additionally, the diversified income fund is managed by george Luckraft, who has over 25 years’ industry experience and has been running income funds at aXa framlington since 2002.

Richard Peirson

after graduating from the university of Liverpool in 1970 with a degree in Computational and statistical science, richard worked briefly as a computer

consultant at arthur andersen before moving to the City in 1972. from 1975 he worked at Carr sebag with private clients, moving with the business to grieveson grant and then Kleinwort Benson in 1986. from 1991 he was head of uK active Management and equity research, being responsible for both institutional and retail portfolios. richard joined aXa framlington in March 1994 where he is responsible for the management of a number of pension funds and unit trusts.

aXa framlington is a leading specialist equity fund manager within the aXa investment Managers group. as experts in their field, aXa framlington focuses on aiming to deliver superior investment returns for their clients. their structure and size creates a dynamic environment for the fund managers and this encourages a high level of personal responsibility in which both individual flair and teamwork flourish.


AXA Framlington primarily adopts a bottom-up active management style and its skill is in identifying and investing in companies with growth prospects at a reasonable price. it invests in companies which are expected to produce above-average growth in earnings, dividends and shareholders’ funds over a complete economic cycle.

the lead manager for the aXa framlington Managed fund is richard peirson. richard is responsible for asset allocation and the uK part of the portfolio. international equities are managed by members of aXa framlington’s investment team including anja Balfour (Japanese equities), Mark Hargraves (european equities) and stephen Kelly (us equities).

this strategy allows access to a wide range of global stock markets, creating a diversified portfolio with an active management style. it is driven by individual stock selection

AXA Framlington managed• Investment in a broad range of securities across any region

or sector worldwide• Seeks smooth, consistent, long-term returns: avoiding

unnecessary volatility is a high priority• A diversified and actively managed portfolio built from the

bottom up• Growth at a reasonable price

Portfolio styles

A X A F R A m l I N G t o N

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any yield. Conversely, even if they like the issuer and its management, evaluation must lead them to believe they will be compensated fairly based upon the assessment of the risk being taken.

Zak Summerscale

Zak summerscale joined Babson Capital europe in 2001 from new flag asset Management where he was portfolio manager for a european high yield fund.

The fund was short-listed by Global Investor magazine for investment excellence in High Yield in 2000. prior to new flag, Zak worked for the united Bank of Kuwait (uBK). Zak heads up portfolio management and trading for Babson Capital europe and is also a member of the Babson Capital europe Credit Committee.

Babson Capital was founded in 1940 and now manages over us$205 billion in assets for a broad range of global institutional investors. through proprietary research and analysis and a focus on investment fundamentals, it develops products and investment strategies that leverage its broad array of expertise in fixed income, equities, alternatives, structured product, and debt financing.


at the heart of the Babson Capital philosophy is a belief that fundamental bottom-up research, that seeks to identify relative value across the high-yield spectrum, is the most consistent way to outperform the market whilst limiting risk.

a key differentiator is identifying companies with strong market positions, good cash flows, low debt levels, high levels of fixed assets, conservative accounting practices and respected management. By performing in-depth independent research, Babson Capital aims to capitalise on inefficiencies in the market and uncover the best buying opportunities. if they are uncomfortable with an issuer or indeed its management, they will not invest at

• Fundamentally driven credit selection and portfolio construction

• Construct broadly diversified portfolios across industries and issuers

• Emphasise total return, relative value, and market liquidity• Determine appropriate reward for underwritten risk• Communicate and react to company and market

information on a real-time basis• Active account management to achieve portfolio objectives

as credit and market conditions change

Portfolio style

B A B S o N C A P I t A l

B l A C K R o C K

BlackRock is one of the world’s pre-eminent asset management firms and a premier provider of global investment management, risk management and advisory services to institutional, intermediary and individual investors around the world. established in 1988, Blackrock manages us$4.3 trillion across equity, fixed income, real estate, liquidity, alternatives, and asset allocation/balanced strategies.

Global Equity Investment Philosophy

the core of the global equity fund invests directly on an equally weighted basis in the shares of companies that make up the MsCi all Country World index, providing exposure to the growth potential of equities worldwide. this active management process instils the discipline and requirement to increase the weighting of stocks which have fallen in price and reduce exposure to companies whose share price has risen and may possibly be fully valued.

Global Equity• Aims to reduce risk by avoiding concentration at stock,

sector and country level• Provides growth opportunities through investment in

developing economies• Benefits from dividend reinvestment to boost

long-term returns

Index linked Gilts• Aims to provide a combination of growth and income, by

investing primarily in a portfolio of UK index-linked gilts• Managed on a fully replicated basis in line with the

underlying index• The 50:50 split between sub-indices is rebalanced on a

monthly basis

UK Absolute Return• Diversified portfolio of long and short positions in

uK equities• Research-focused approach focusing on in-depth industry

and company analysis

Portfolio styles

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B l A C K R o C K c o n t i n u e d

experience managing equity portfolios and has held senior roles at Bgi and deutsche asset Management. nimish was also a portfolio manager at northern trust global investment where he managed a broad range of equity and fixed interest portfolios.

Nigel Ridge

nigel ridge is a member of the uK equity team and a member of the uK and pan european Model portfolio team in London. He joined Blackrock in

1994 after six years at schroder investment Management. nigel has a Bsc from Loughborough university.

Francis Rayner

francis rayner, Vice president, is a member of Blackrock’s fixed income portfolio solutions group. His service with the firm dates back to 2008,

including his years with Barclays global investors (Bgi), which merged with Blackrock in 2009. prior to joining BGI, he spent six years working for Prudential M&G and international financial data services as a client relationship manager. francis earned a Bsc in Mathematics from Lancaster university in 1999 and holds the Chartered Institute for Securities & Investment Diploma.

luke Chappell

Luke Chappell is co-Head of UK Equities at Blackrock. He is responsible for managing uK equity portfolios for institutional clients, and for co-ordinating

company research in the media sector. prior to joining the firm, Luke worked at fleming asset Management in a range of research and fund management roles. Luke earned an Ma in Classics from oxford university in 1990 and has 25 years of investment experience.

Index linked Gilts Investment Philosophy

the index Linked gilts fund is managed on a fully replicated basis where the fund’s exposure to each security in the index is in line with the weight it has in the underlying index. the portfolio managers are able to monitor funds relative to their benchmark to analyse the fund across several dimensions including maturity, duration and individual issues.

UK Absolute Return Investment Philosophy

the equity team at Blackrock adopts a principle belief that equity markets are inefficient and that rigorous, fundamental research combined with an understanding of macroeconomic themes enables them to identify opportunities to outperform.

understanding companies is at the heart of the research process and stock selection is a key driver of performance. the strategies employed in managing absolute return portfolios enable Blackrock to exploit the same process to potentially create positive returns not only from stocks owned in long-only funds but also from stocks that would otherwise be avoided.

UK & General Progressive Investment Philosophy

the investment philosophy centres on Luke Chappell’s belief that markets are not wholly efficient and that a commitment to bottom-up, fundamental company research and high-conviction investing allows the team to uncoveropportunities to add value by vigorously exploiting anomalies.

the investment process is flexible and not constrained by rigidly adhering to a particular style – such as value or growth – reflecting Luke’s belief that no single approach will prosper during all stages of the equity market cycle.

Eleanor de Freitas

eleanor de freitas is a managing director and head of Blackrock’s index equity group in europe. prior to Blackrock, eleanor held a number of senior strategy

and portfolio management roles at Bgi and ing Barings, where she played an instrumental role in developing their quantitative equity research product.

Nimish Patel

nimish patel is a managing director and senior portfolio manager within Blackrock’s institutional index equity team. nimish has over 15 years’

UK & General Progressive • Aims to exploit anomalies and opportunities for the

portfolio through bottom-up, fundamental company research and high-conviction investing

• Concentrated portfolio of 15–25 holdings selected on the basis of diligent and in-depth research and analysis

• Identifying companies with a sustainable competitive advantage that is underestimated by the market

Portfolio styles

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management is based primarily on how well they run their business (ie their operating skills) and how they use the earnings within that business.

Kenneth A. Broekaert

Ken is Vice president and portfolio Manager of european equities at Burgundy asset Management. Ken joined Burgundy in april 2003, having previously

worked at the Boston Consulting group, working closely with the senior management of blue chip companies, developing and implementing business strategies to enhance competitive advantage and drive profitable growth. Ken graduated from the richard ivey school of Business in 1998 and earned his MBa in 2003. He was awarded the Chartered financial analyst designation in 2005 and is a member of the Cfa institute.

Richard Rooney

richard began his career at price Waterhouse in 1981 and qualified as a chartered accountant in 1984. He then joined sun Life as an investment analyst

specialising in Canadian equities and went on to hold a number of senior portfolio manager roles. richard joined Burgundy in february 1995, and was appointed president and Chief investment officer in september 1997. He received a Bachelor of arts degree from the university of toronto in 1977 and his MBa from the richard ivey school of Business at the university of Western ontario in 1981. richard obtained his Chartered financial analyst designation in 1987.

Burgundy asset Management is a leading global investment manager which follows a disciplined, bottom-up, value-driven investment approach, supported by intensive fundamental research. its rigorous, original research enables it to seek out strong, but undervalued companies with the objective of achieving solid returns over the long term. founded in 1991, Burgundy is fully independent and unaffiliated, and is wholly owned by key employees.


Burgundy strives to produce superior long-term results by investing in high-quality companies and focusing on long-term absolute returns. this approach seeks out companies with outstanding fundamentals and financial characteristics that can be purchased at a significant discount to its estimate of the intrinsic value. this difference is defined as the Margin of safety.this margin allows for a higher degree of capital preservation for clients as they pay far less than Burgundy believes the company is worth. furthermore, investments purchased at a large enough discount hold the potential to provide significant investment returns as this discount or Margin of safety reduces. in order to formulate this Margin of safety, extensive research and analysis is performed on the intangible factors of a company, eg the capability of the management team and the potential future impact of new product launches.

Burgundy focuses on a company’s true value: not its market value. this means analysing not only its financials, but also the intangible factors which can be determined only by meeting with and assessing a company’s management and board of directors. Burgundy’s evaluation of a company’s

• Contrarian philosophy, drawn to ‘out of favour’ stocks• Focus on key fundamentals, not fads or fashions• Buy & hold approach results in low turnover

Portfolio style

B U R G U N D Y

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E D G E P o I N t

tye Bousada

tye Bousada is a founding partner, President and co-CEO of EdgePoint investment group, and a portfolio Manager for edgepoint’s global equity

strategy. prior to founding edgepoint, tye was a Vice president and portfolio Manager at invesco Ltd. (Canada), joining the company in 1999 as a portfolio Manager on the Canadian equity team.

tye held a number of senior roles at invesco and was appointed lead manager of the flagship trimark fund in 2004, a position he held until leaving the company in 2008. under his management, the trimark fund was recognised numerous times for superior investment achievement. tye earned an Honours Business administration degree from the university of Western ontario and is a Cfa charterholder.

Geoff macDonald

geoff Macdonald is a founding partner, CIO and co-CEO of EdgePoint investment group, and a portfolio Manager for edgepoint’s global equity

strategy. prior to founding edgepoint, geoff was a Vice president and portfolio Manager at invesco Ltd. (Canada), joining the company in 1998.

geoff successfully managed a broad range of trimark funds during his 10-year tenure where his achievements were recognised with a number of investment awards. geoff earned a Bachelor of Business administration degree from Bishop’s university and an MBa from the university of Windsor. He is also a Cfa charterholder.

EdgePoint is an employee-owned investment management company based in toronto, Canada and founded in 2008. edgepoint is responsible for us$7 billion of assets under management across its client base of almost 50,000, primarily retail investors.

the firm’s founding members have a proven track record of building wealth for their investors. edgepoint’s investment approach is grounded in developing a fundamental understanding of the companies in which they invest, based on extensive research.


edgepoint’s investment approach aims to buy good, undervalued businesses and hold them until the market fully recognises their potential. this approach requires an ability to think independently, a natural curiosity to search out new ideas and a commitment to embrace the thorough research required to uncover opportunities the market doesn’t fully appreciate.

to execute this approach successfully, the investment team seeks to identify companies it can definitively understand that trade below its estimate of intrinsic value and that can be expected to grow over the long term. Rather than looking for a short-term catalyst for growth, the team focuses on companies that have the potential to grow earnings and cash flow over a number of years.the team invests in an idea only when it can buy an interest in a business below the team’s assessment of its true worth. By definition, edgepoint is considered a value investor. However, in addition to value, edgepoint seeks businesses capable of growing capital value over time. this, by definition, makes it a ‘growth’ investor. put simply, edgepoint aims to identify ‘growth’ companies at ‘value’ prices.

• Focus on companies that have the potential to grow earnings and cash flow over a number of years

• Invests in an idea only when it can buy an interest in a business below the team’s assessment of its true worth

• Focus on companies with strong competitive positions, defendable barriers to entry, good long-term growth prospects and competent management teams

Portfolio style

management business, focused on developing and managing innovative investment products which seek to outperform investment objectives.

first state forms part of the consolidated asset management business of the Commonwealth Bank of australia, managing around £95 billion on behalf of investors worldwide, with a history dating back to 1871. first state is a specialist asset

• Absolute return mindset• Focus on long-term investment in quality companies• Seeks sustainable and predictable growth

Portfolio style

F I R S t S t A t E

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‘benchmark agnostic’ style. Whilst aware of the country, sector and major company weightings in the benchmark index, the team does not apply minimum portfolio weightings to specific countries, sectors or companies.

Jonathan Asante

Jonathan asante is the lead portfolio manager for first state’s share of the Worldwide Managed fund. Jonathan joined first state in november 2004 as

a senior analyst, being appointed Joint deputy Head of global emerging Markets in 2006.

Jonathan started his career at the natWest group analysing the uK economy and credit markets before moving to framlington in 1995 where he was a global emerging markets fund manager and group economist. Jonathan graduated from the London school of economics with a Bsc and Msc in economics.

it offers a range of product structures across categories including Asia-Pacific and global emerging markets, global resources and global equities, property securities and infrastructure.


first state’s approach to investing in emerging markets is heavily research-focused, employing a rigorous bottom-up research process which combines regular company visits with extensive fundamental analysis. the team conducts comprehensive ‘on the ground’ fundamental proprietary research, meeting with in excess of 1,000 companies every year via meetings with the management team and industry conferences.

Research aims to identify the highest-quality companies with sustainable long-term growth prospects and to focus on those stocks where first state believes the market has incorrectly priced future growth potential. furthermore the select strategy means that the portfolio is only able to invest in stocks which have a minimum us$5 billion market capitalisation. This bottom-up approach defines First State’s

Paul Read

paul graduated in economics and History from the university of toronto in 1984 and has an MBa from insead. He began his career with uBs (securities) Ltd, then

moved to Merrill Lynch international in 1986. paul joined perpetual (now invesco perpetual) in 1995.

Paul Causer

after graduating in economics at the London school of economics in 1983, paul began his career in research and credit analysis with asahi Bank, the

large Japanese commercial bank. paul joined perpetual (now invesco perpetual) in 1994.

Corporate Bond Investment Philosophy

the team’s investment philosophy is built on a belief that fixed-interest markets are mostly efficient but still continually present opportunities. Markets have a tendency to overshoot, moving prices away from fundamental value. investors in these markets will have different objectives and can have rigid investment constraints; the team looks to exploit these inefficiencies through fundamental analysis and a strong emphasis on valuation. the investment process is flexible and pragmatic and re-questions underlying assumptions.

Paul Read and Paul Causer co-manage the Corporate Bond fund and are co-leaders of the Invesco Perpetual fixed- interest team.

invesco perpetual is one of the largest independent investment managers in the uK, and forms part of invesco Ltd, which was originally incorporated in 1938 and now has offices in over 20 countries. active fund management is at the heart of their approach – building portfolios based on rigorous research, to identify the investment opportunities most likely to provide strong long-term returns.

Corporate Bond• Credit analysis• Macroeconomic analysis• Value assessment• Aiming to provide cash returns higher than the average

Portfolio styles

I N V E S C o P E R P E t U A l

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the medium term, and then uses fundamental analysis to identify attractive valuations. this method of investing looks to avoid the pitfalls of momentum investing and relative valuation focus which drive the market at certain points in the economic cycle.

The objective is to achieve long-term capital appreciation, principally in a portfolio of quoted uK securities, by managing money with an absolute return mindset. the portfolio is unconstrained by benchmark, sector or market-cap measures, which means that each individual holding is based on high-conviction decisions while allowing the manager to adopt a strict sell discipline.

John Wood John joined J o Hambro in 2005 from newton investment Management where he was a director in newton’s uK equity team. He launched newton’s

uK opportunities fund and was responsible for a number of mandates. John gained a Ba (Hons) in economics from the university of Warwick and qualified as a Chartered Accountant at Ernst & Young.

J o Hambro Capital Management was founded in 1993, and is a boutique investment house with over 80 employees working in a single office location in London. over 90% of the equity capital is owned by the individuals who continue to work in and manage the business.

its fund managers apply their own individual philosophies to the funds they manage. they make their own investment decisions within pre-agreed portfolio construction guidelines. J o Hambro does not impose a house style or process, centralised research or committee-led decisions on the managers. each fund manager sets a cap on the amount of assets that they are prepared to take on from investors.


John Wood believes that stocks represent shares in a company’s underlying cash flows: they are not just pieces of paper to buy and sell. Markets consistently underestimate the value created by well-managed companies that demonstrate sustainable growth characteristics and reinvest their profits wisely.

He looks for businesses which benefit from long-term tailwinds, generating persistent excess returns over cash in

• Unconstrained by benchmark, sector or market cap• Concentrated portfolio: approx 30–40 holdings• Sector diversity acts as the main risk control

Portfolio style

J o H A m B R o

Kenneth Buntrock

Kenneth started his investment career in 1974 and joined Loomis sayles in 1997. previously, he had been with Mellon Bank. He earned a Ba from pennsylvania state

university and an MBa from the university of pittsburgh.

Loomis sayles has been managing money for investors since 1926, after being incorporated in Boston, Massachusetts. the firm currently manages in excess of us$221 billion. still based in Boston, the company is supported by a global network of offices, including in London.


Loomis Sayles believes that intensive bottom-up investment analysis combined with a clear macroeconomic and market perspective is the best way to deliver superior performance. portfolios are constructed by small, focused teams supported by extensive issuer, sector, economic, market, trading and quantitative analysis. the philosophy is long term and they believe that by taking such an approach, investors can exploit volatility and remove ‘noise’ from the market.

• Aims to provide an optimum balance of income and capital growth

• Investment grade classification requires a credit rating from Standard & Poor’s no lower than a ‘BBB minus’

• Extensive analysis with a long-term focus• By taking this approach, investors can exploit volatility

and remove ‘noise’ from the market

Portfolio style

l o o m I S S A Y l E S

15

in companies with a range of valuation multiples provided they deem it to be an outstanding business and the shares are trading at an appropriate discount to their assessment of its intrinsic value.

Hamish Douglass

Hamish Douglass is co-founder and Chief executive officer of Magellan. He is a member of the Magellan investment Committee and the lead portfolio

manager for its global equity strategy. prior to founding Magellan, Hamish was Co-Head of Global Banking for deutsche Bank ag in australia and new Zealand. Hamish is a member of the australian government’s foreign investment review Board, the financial Literacy Board and the takeovers panel. He is also a member of the forum of Young Global Leaders – World Economic Forum.

discount to their estimate of intrinsic value and are capable of increasing this intrinsic value by 10% each year. essentially, the approach consists of three stages: idea generation, fundamental analysis and portfolio construction.

Magellan was founded in July 2006 and is based in sydney, australia. today, Magellan is responsible for the management of over a$25 billion of assets across its client base of local retail investors and institutional clients around the world.


Magellan’s investment philosophy is relatively simple – to find outstanding companies at attractive prices whilst maintaining a fundamental understanding of the wider macroeconomic environment, enabling them to effectively manage risk within the portfolio.

Magellan builds a concentrated portfolio that trades at a discount to its assessment of intrinsic value. they also aim to protect the portfolio in adverse markets and manage downside risk through the integration of detailed macroeconomic research and a robust risk management framework.

While they are extremely focused on fundamental business value, Magellan is not a typical ‘value’ investor and firmly believes that companies that appear undervalued by traditional valuation measures – price to earnings or price to book multiples – will often prove to be poor investments if the underlying business is fundamentally weak. they invest

• Protect the portfolio in adverse markets and manage downside risk through the integration of detailed macroeconomic research

• Concentrated portfolio of 20–40 high-quality companies• Employs rigorous quantitative and qualitative screens to

filter a global equity universe to identify companies with market capitalisations greater than us$5 billion

• Conduct face-to-face meetings with the management teams of the companies they are considering

Portfolio style

m A G E l l A N

m A J E D I E

Majedie asset Management is a boutique asset management company based in London and was established in 2002.

today it has over £10 billion of funds under management across a wide range of institutional clients.

UK & General Progressive and UK Growth Investment Philosophy

Majedie’s investment philosophy is based upon its disciplined investment approach which is firmly anchored in common sense. the cornerstone of this philosophy is to buy good businesses at cheap valuations. the investment team is continually looking for businesses that trade at a 20%

UK & General Progessive and UK Growth• Diversified across four different management styles• The management team seeks to identify long-term trends

rather than reflect on short-term market movements• Seeks undervalued companies with the potential to move

their market position

UK Income• Identifies cheap companies that are changing for the better• Typically includes 40–70 companies and combines

a majority uK equity weighting with exposure to international equities

• Around a third of the portfolio is invested in mid-cap companies with a value below £2 billion

Portfolio styles

1616

m A J E D I E c o n t i n u e d

the team looks for companies with the following characteristics: high returns on capital, steady and predictable growth, strong margins, strong balance sheets, and attractive free cash flow yields. the team seeks to build a detailed understanding of a company’s operational and financial characteristics in order to assess the sustainability of its cash flows. they will also consider qualitative factors, such as management quality and corporate culture, which indicate the long-term durability of a company’s returns.

UK Income Investment Philosophy

Utilising Majedie’s first-class research systems, Chris Reid’s investment philosophy is to find cheap companies that are changing for the better and which will deliver an attractive yield and growing dividends as the change takes place. When a new idea is identified, four key questions are posed. are the economic prospects for the company improving? is the company improving its competitive position versus its peers? Can the balance sheet support both shareholder income and business investment? is the company’s valuation cheap relative to its industry peers, history or its prospects? The portfolio typically includes 40–70 companies and combines a majority uK equity weighting with exposure to international equities. around a third of Chris’s portfolio is invested in mid-cap companies with a value below £2 billion.

James de Uphaugh

James de uphaugh has over 20 years’ investment experience in uK equity markets. Before co-founding Majedie in 2002, James had been a managing director

at Merrill Lynch investment Managers where he was also Chairman of the uK investment group.

matthew Smith

Matthew smith has worked in the industry for over 15 years, having been a director at deutsche Bank, where he was a pan european support services analyst.

until 2004 he had been a director and transport analyst at Credit suisse.

Chris Field

Chris field has over 25 years’ investment experience in uK equity markets. along with James, Chris had also been a director at Merrill Lynch investment Managers

where he was also a member of the uK investment group.

Adam Parker

adam parker has worked in uK equities for 25 years, having been a director at Merrill Lynch investment Managers, where he was also a member of the uK

asset allocation group.

Richard Staveley

richard staveley is a fund manager and analyst with 15 years’ experience in uK and international equity markets. richard was a founding partner of river and

Mercantile asset Management. He was Head of uK small Companies at société générale asset Management.

Chris Reid

Chris has over 15 years’ experience as a fund manager and analyst in uK and international equity markets. prior to joining Majedie in 2008, Chris was a

director at Deutsche Bank and Pan European Travel & Leisure analyst. until 2005 he was a transport analyst for Credit suisse. previously Chris spent 10 years as a consultant at pa Consulting group.

17

m A N U l I F E

The portfolio will typically hold 40–50 companies. Positions are established gradually with an average initial weighting of 1.0–1.5%. the maximum weighting will rarely exceed 5% and has a cap of 10%. the top ten holdings usually account for no more than 35% of the portfolio to limit overall concentration. risk management is an integral part of the investment process, which also includes continual analysis of the fundamentals of all holdings as well as the relative risks in the portfolio, to develop a comprehensive understanding of the financial risks associated with any particular stock.

Paul Boyne

after six years with chartered accountants and management consultants, grant thornton international, paul began his investment career with Morgan

stanley investment Management and became a managing director and a senior portfolio manager of its global value equity product. prior to joining Manulife he was a senior fund manager within the global equities team at invesco perpetual. paul is now a senior managing director and senior portfolio manager for Manulife.

Doug mcGraw

doug is a managing director and portfolio manager for Manulife. He was most recently a portfolio manager within the global equities team at invesco perpetual.

doug began his investment career as an investment analyst for the first national Bank of southwestern ohio and also held positions as an analyst and portfolio manager with Morgan stanley. He is a member of the Cfa institute.

Headquartered in toronto, Canada and with investment management experience dating back to the 1800s, Manulife asset Management is a leading global investment manager. its global equity team is based in Boston, usa but the reach of the investment function extends to 17 countries and territories and features more than 325 investment professionals around the world. Manulife follows a disciplined, bottom-up, fundamental approach to investing with a long-term investment philosophy.


Central to Manulife’s investment approach is the belief that long-term outperformance can be achieved by taking advantage of the market’s disproportionate focus on short-term factors to purchase quality companies with attractive valuations.

The investment team employs an unconstrained, bottom-up, stock-selection process based on fundamental research with the aim of creating a diversified global portfolio of quality stocks that not only demonstrate compelling value but also generate sustainable cash flows. the team seeks to identify undervalued companies that exhibit key characteristics: solid business franchises, strong management teams, strong balance sheets, disciplined capital allocation, attractive valuations, and sustainable margins/cash flows.

stocks identified as potential investment candidates will undergo comprehensive fundamental research by the global equity team, regardless of where the idea is sourced. this is combined with the construction of a full financial model including the team’s forecasts for future years. the key output from this work is the calculation of a ‘fair value’ target price at which the team believes the stock would trade if its investment thesis were to prove correct under different scenarios.

• Concentrated portfolio of 40–50 stocks• Unconstrained, bottom-up, stock-selection process based

on fundamental research• Risk management is an integral part of the investment process

Portfolio style

1818

secondly, that it is possible to profit from these changing fashions by investing in good stocks with improving fundamentals when they are undervalued; and selling or avoiding lower-quality or highly fashionable stocks with deteriorating fundamentals.

thirdly, that an independent manager should have the freedom and flexibility to best exploit this philosophy, unencumbered by such constraints as an overriding house style and decision-making by committee.

Nick Purves

originally qualifying as an accountant, nick moved from KpMg to schroders in 1994. He departed to rWC in 2010 where he retained the management

responsibility of the st. James’s place equity income fund.

rWC is an independent asset manager with a strong partnership culture and a long-term perspective. Established in 2000 as a specialist asset manager, its intention is to foster an environment where talented portfolio managers can focus exclusively on seeking to produce first-class sustainable returns for investors.


there are three principles that characterise the team’s investment philosophy. at its core is the fundamental belief that equity markets are strongly influenced by short-term investment fashions that cause share prices to deviate away from their fundamental values. at times, investors are susceptible to becoming significantly over-enthusiastic or significantly depressed about the prospects for individual stocks or sectors.

• Focused portfolio• Value style with a focus on income• Preference for stocks that are out of favour

Portfolio style

RW C

S A N D S C A P I t A l

• Fundamental growth investment style• Focus on companies that have significant competitive

advantage over their peers• Extensive quantitative and qualitative research

Portfolio style

S A N D SCAPITAL MANAGEMENT

However, perhaps more important is that this conviction combined with their business-focused approach enables them to enjoy a temporal advantage over those investors with substantially shorter time horizons. they believe this difference in perspective allows investors to benefit in a world in which undue emphasis is placed on quarterly results and short-term stock price fluctuations, instead of long-term business results and wealth creation.

David levanson

david Levanson, Cfa, has over 20 years’ industry experience, starting his career in 1990 as a research analyst at the Capital Management group and moving to sands

Capital for the first time in 1992. david joined state street in 1996 and Mfs investment Management in 1999 before rejoining sands Capital in 2002 as senior research analyst and senior portfolio Manager. He has a Bs in finance from the university of florida and an MBa from the university of Virginia.

sands Capital Management is an independent investment management firm focused exclusively on portfolios of high-quality growth companies. Established in 1992, sands Capital was created with the sole mission ‘to add value and enhance the wealth of our clients with prudence over time’. the company is based in arlington, Virginia and is responsible for us$42 million of assets under management.


sands Capital’s philosophy is founded on its belief that stock price appreciation follows sustained above-average earnings growth. sands Capital works to identify a handful of truly exceptional growth businesses and construct concentrated ‘best ideas’ portfolios. By conducting deep, fundamental research, they are often able to capture a research or information edge that comes from building conviction in a company’s ability to grow at a higher rate and/or for a longer duration than the market appreciates.

19

Perry Williams

perry Williams joined sands Capital in 2004 and served as a co-portfolio manager on sands’ select growth strategy from 2009. in 2013, perry joined

david and sunil on the global growth strategy to help manage global research priorities and to provide additional perspective to the investment decision-making team. Perry is also a senior portfolio Manager.

Sunil thakor

sunil thakor, Cfa, has industry experience since 1999, starting his career as an analyst with Charles river associates before joining sands Capital in 2004. sunil progressed at

sands Capital from an internship to research analyst before becoming senior research analyst and senior portfolio Manager. He has a BA in Economics-Maths from Colby College and an MBa from Columbia Business school.

schroders is a leading investment management company with total assets under management worldwide exceeding £271 billion. schroders’ history began in 1804 and it now has over 3,000 staff worldwide operating from 33 offices in 26 different countries across europe, the americas, asia and the Middle east.

schroders has specialised in the management of uK institutional funds for over 70 years and is one of the leading active uK fund managers. it has dedicated global resources enabling it to provide specialist asset management expertise to a range of institutional, retail and private banking clients.

Schroder managed/managed Growth Investment Philosophy

schroders’ philosophy is to employ active stock selection with each asset category within the funds administered by specialist management teams. schroders’ investment process draws upon their extensive in-house research network. In combining their investment philosophy with a rigorous approach to controlling risk in their portfolios, schroders have achieved a strong long-term record of performance for their clients.

nick Kirrage and Kevin Murphy run the uK equity element of the schroder Managed fund and adopt a focused strategy using their own distinctive stock-selection capabilities, aiming to create high-performance portfolios. They seek to identify stocks which trade at a substantial discount to their fair or intrinsic value and where they believe that profits growth will surpass expectations. it is these stocks that generally provide the most attractive investment returns over the long term.

Schroder managed/managed Growth• A blend of styles for each of the geographical and asset classes• Fund managers drawn from across the Schroder global

investment team

Portfolio styles

S C H R o D E R S

Nick Kirrage

nick Kirrage has a Masters degree in aeronautical engineering, and is a Cfa Charterholder. He joined schroders in 2001 as a uK equity research analyst. He

joined the Specialist Value Team in 2006 and co-manages schroders’ recovery fund.

Kevin murphy

Kevin Murphy is a Cfa Charterholder, and has a degree in economics. He joined schroders as a graduate in 2000, and began as a junior member on the uK

fund management desk working on private bank portfolios. He is currently a member of the specialist Value team, and co-manages the Schroder Recovery fund alongside Nick.

2020

Select Equity Group is a New York-based investment boutique that was founded in 1990 by george Loening as an equity research organisation selling subscription newsletters to institutional investors in the us. in 2001, this service was discontinued; but the business has grown considerably and today select equity is responsible for assets under management of us$12 billion across seven separate investment strategies, encompassing both long-only and long/short funds.


select equity’s investment edge lies in the rigour and originality of its approach to company research which aims at collecting facts over opinions, obtaining proprietary insights through alternative interviewing techniques, and vetting those insights and related assumptions in a collegial, broad-based manner. this is overseen by seasoned portfolio managers who construct high-conviction benchmark-agnostic portfolios.

• Rigorous research: wanting to know the businesses in their portfolios better than anyone

• Investing in great businesses: focusing only on businesses that meet their stringent quality criteria

• Disciplined investing: believing that, with patience, the market will provide opportunities to buy great businesses at fair valuations

Portfolio style

S E l E C t E q U I t Y

Chad Clark Chad Clark joined select equity in august 2010 and is the lead portfolio manager for both long-only and long/short global equity strategies. prior to joining select

equity, he previously spent 14 years at Harris associates where he was a Partner and co-managed the Oakmark International small-cap fund. Chad is a Chartered Financial analyst and received a Bs from Carnegie Mellon university in pittsburgh.

George loening george Loening founded select equity in January 1990 while still studying at Columbia university from where he graduated in 1992.

With the exception of a part-time position as a junior analyst at Gabelli Asset Management, George is a self-taught investor and is responsible for developing the company’s investment and research engines. from inception george operated independently for almost two years before launching a US equity small- and mid-cap strategy and is now also the lead portfolio manager for a number of long-only and long/short us strategies.

this enables him to understand in depth the companies in which he invests, and allows a high-conviction approach to portfolio construction.

Stuart mitchell

Based in London, s.W. Mitchell Capital was founded in april 2005 by stuart Mitchell.

stuart joined Morgan grenfell asset Management (MgaM) in 1987 where

he was responsible for managing the Continental european equity assets for MgaM’s pension fund clients. following this, he joined J o Hambro investment Management in 1998 and was appointed Head of specialist equities.

s. W. Mitchell Capital manages european equity assets in a number of segregated accounts for a broad range of internationally based clients.


S. W. Mitchell Capital operates a highly dynamic and stock- focused approach to investment management involving regular meetings with a large number of companies across europe.

the company specialises in building focused portfolios of european equities. they aim to invest in undervalued companies that offer the potential for capital growth over the medium to long term.

the Continental european fund invests in companies in mainland europe, not including the uK. the greater european fund invests in companies across europe, including the uK.

Stuart describes his style as ‘research-based’ and normally holds approximately 30 stocks in the portfolio at any time.

• A focused global equity portfolio• Unrestricted investment process• Seeking significant capital growth opportunities over the

long term• Suitable for sophisticated investors

Portfolio style

S . W. m I t C H E l l C A P I t A l

21

capitalisation over $1 billion, providing a global universe of over 1,300 companies from which to select. stephen has a ‘go anywhere’ approach and utilises the analysis of the regional and sector research teams, as well as threadneedle’s macro and thematic views, to construct a portfolio of 75–95 stocks. the size of each position is determined by valuation upside, strength of conviction and impact on portfolio risk.

The fixed-income element of the fund, managed by Jim Cielinski, is constructed from a blend of cash and short-dated and index-linked gilts.

Richard Colwell richard joined threadneedle in 2010 as a portfolio manager in the uK equity income team. He manages the Threadneedle UK Growth & Income Fund

and co-manages the Monthly Extra Income Fund, UK Equity income fund and the uK equity alpha income fund.

Stephen thornber stephen joined threadneedle in 1994 and manages the global equity income fund and is responsible for several other global portfolios. prior to joining the global

equity team, stephen was a uK equity fund manager and spent five years managing the threadneedle uK Monthly income fund.

Jim Cielinski Jim Cielinski joined threadneedle in 2010 as Head of fixed income and is responsible for the overall management of the fixed-income business, including investment

process, product development and investment strategy.

threadneedle investments is the international investment management arm of ameriprise financial, and is a leading active investment manager with approximately £92 billion of assets under management. its investment approach is active, client-focused and performance-driven. Established in 1994, the company has locations in 18 countries and employs over 150 investment professionals with global expertise across developed and emerging market equities, fixed income, commodities and uK property.


this balanced managed mandate will utilise uK and international equities alongside fixed-interest securities and cash. richard Colwell leads the uK equity strategy, joined by stephen thornber managing global equities and Jim Cielinski for the fixed-income element.

Colwell aims to generate strong performance through the investment cycle by investing in attractive businesses which may have fallen out of favour. At least two-thirds of the portfolio will be invested in large, well-known companies with good growth records, typically in the bottom half of the ftse 100 index. Colwell is also able to invest in small and medium-sized businesses within the portfolio, which typically has 35–55 holdings. The strategy is managed for total return through a balance of growth and income opportunities, whilst typically maintaining a yield above that of the market. the portfolio has a low turnover, and Colwell seeks to gain a full and detailed understanding of businesses through active engagement with management. Colwell will not be a forced seller simply because valuations are increasing. this flexibility means he is prepared to hold a stock through its cycle from a value to a growth play.

stephen thornber has managed threadneedle’s global equity income fund strategy since its launch in 2007 and has a focus on ‘quality income’: companies that deliver high and sustainable dividends but also generate growth and operate with a robust financial structure. the growth requirement aims to provide strong performance in rising markets while retaining the defensive attributes that are typically associated with income funds. the strategy invests in companies with a dividend yield above 4%, resulting in a high aggregate portfolio yield. all stocks must also have a market

• Balanced managed mandate utilising UK and international equities alongside fixed-interest securities and cash

• UK equity strategy is managed for total return through a balance of growth and income opportunities

• Global equities strategy has a focus on ‘quality income’ opportunities

Portfolio style

t H R E A D N E E D l E

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since its foundation in 1920 tweedy, Browne Company LLC (tweedy, Browne) has been grounded in undervalued securities, first as a market maker, then as an investor and investment advisor. tweedy, Browne’s main offices are in new York and they have a research office in London. today they are responsible for us$22 billion of assets under management across five investment strategies for a wide range of retail and institutional clients.


the investment management principles practiced by tweedy, Browne derive from the work of the late Benjamin graham, considered by many to be the ‘father of value investing’. This philosophical anchor grounds their decision-making processes and insulates their thinking from the emotional aspects of the stock market and prevailing day-trading culture. investing is interpreted by the investment team at tweedy, Browne as firstly prudently determining the value of a business and secondly waiting for an opportunity to buy an interest in the business at a discount to that value.

tweedy, Browne’s research seeks to appraise the worth of a company, its ‘intrinsic value’, by determining its acquisition value, or by estimating the collateral value of its assets and/or cash flow. investments are made at a significant discount to the intrinsic value, a ‘margin of safety’. investments are generally sold as the market price approaches intrinsic value, with the proceeds reinvested in opportunities offering a greater discount to intrinsic value.

tweedy, Browne has incorporated the same basic criteria in their investment screening and decision-making process for the past 50 years and more. the key metrics against which a company is measured are: low price-to-book-value ratio, low price-to-earnings ratio, a significant pattern of purchases by insiders, a significant decline in price and a history of paying an above-average dividend.

the majority of tweedy, Browne’s investments have had at least one, and, more frequently, several of these investment characteristics supporting the fundamental principles on which their investment approach is based.

t W E E D Y, B R o W N E

Will Browne

William H. Browne has been with tweedy, Browne since 1978. Mr Browne has a Ba from Colgate university and an MBa from trinity College, dublin.

John Spears

John d. spears joined tweedy, Browne in 1974. Mr spears studied at the Babson institute of Business administration, drexel institute of technology and the

Wharton school of the university of pennsylvania.

thomas Shrager

thomas H. shrager has been associated with the company since 1989, having previously worked in mergers and acquisitions at Bear stearns. Mr shrager

has a Ba and Masters in international affairs from Columbia university.

Robert Wyckoff

robert Q. Wyckoff, Jr. has been associated with the company since 1991. prior to joining tweedy, Browne, Mr Wyckoff held positions with Bessemer trust,

J. & W. Seligman, and Stillrock Management.

• Strict value-based investment principles derived from the legendary investor Benjamin graham• Fundamental research seeks out companies trading at a significant discount to intrinsic value• Focus on companies that offer an above-average dividend yield

Portfolio style

23

committed management; and a reasonable valuation. the focus on cash flow is evident in the high level of free cash flow growth and dividend growth from the portfolio versus the index over the long term. Whilst valuation is important, Wasatch is fundamentally a growth investor. the team’s ability to identify businesses that have the ability to achieve sustainable, long-term growth is crucial to its success.

Ajay Krishnan ajay joined Wasatch as a research analyst in 1994 and has managed a number of strategies in his 20-year tenure. today, ajay is the lead portfolio manager for

Wasatch’s emerging markets portfolio. ajay received an MBa from utah state university and completed his undergraduate degree at the university of Bombay where he read physics and Mathematics.

Roger Edgley roger joined Wasatch in 2002 and is a member of the board of directors. in addition, roger is the director of international research and is a portfolio

manager for the Wasatch emerging Markets small Cap and select portfolios. prior to joining Wasatch, roger worked at Société Générale Asia and Chicago-based Liberty Wanger asset Management.

founded in 1975 and based in utah, united states, Wasatch provides a range of investment strategies and employs a fundamental, bottom-up approach to investing in high-quality, long-duration growth businesses. An employee-owned company, with $19.4 billion of assets under management, Wasatch has a well-diversified group of both institutional and retail clients.


Wasatch adopts a disciplined approach to investing, focusing on bottom-up, fundamental analysis to develop a deep understanding of the investment potential of individual companies. Wasatch believes the typical approach to emerging markets investing leads to a poorly diversified portfolio, heavily skewed towards highly correlated, large-cap companies exposed to the cyclicality of global developed markets. the Wasatch strategy pursues wider country diversification and a greater focus on companies that are meeting home-country consumer demands.

the investment universe for this fund covers more than 30 countries and includes companies covering a typical market cap range of $3–20 billion. The majority of ideas are generated through industry contacts, researching competitors of existing holdings, the initial screening process, or company visits. Wasatch also takes advantage of ideas from its small-cap-focused portfolios that outgrow those mandates in what it terms ‘the graduation effect’. frequently, members of this group that graduate out of the small-cap classification are neglected or poorly understood by analysts, offering otherwise missed opportunities to invest in successful, growing businesses.

the investment team adheres to four key criteria when considering adding any new position to the portfolio: financial quality; consistent, long-duration growth; exceptional and

• High-conviction portfolio of 30–40 names with a typical weighting of around 3%

• Holds quality businesses regardless of the industry or region in which they operate

• Belief that the biggest risk management tool in the portfolio construction process is extensive due diligence

Portfolio style

WA S A t C H

2424

tracing its roots to 1928, Wellington Management is one of the largest independent investment management companies in the world with assets under management of over US$900 billion. The company is an employee-owned partnership whose sole business is investment management.

Headquartered in Boston, the company and its affiliates have offices in atlanta, radnor (pennsylvania), san francisco, London, Hong Kong, singapore, tokyo and sydney.


Wellington Management’s distinctive strength is its fundamental research capability. they believe that the skill and experience of their analysts and portfolio managers enables them to make superior evaluations of companies. their investment team is one of the largest and most experienced in the industry.

W E l l I N G t o N m A N A G E m E N t

Haluk Soykan

Haluk is a fixed income portfolio Manager and senior member of the global Bond strategy group. He participates in

the management of the firm’s global bond portfolios, as well as leading the team’s efforts on behalf of institutional and mutual fund clients investing in the european and uK bond markets. Haluk joined Wellington Management in 1996.

• Research-driven stock selection• Uses a cautious blend of quantitative analysis and

index-matching• No chief investment officer, giving fund managers

more freedom• Team-focused approach

Portfolio style

W o o D F o R D

• Bottom-up without regard to the benchmark index• Weightings determined by level of conviction in the

investment thesis• Risk management considerations are central, with risk

defined as the potential for permanent loss of capital

Portfolio style

With a career spanning over 30 years, neil Woodford has become one of the best-known fund managers in the UK investment industry and his disciplined, valuation-oriented investment approach has consistently delivered outstanding long-term performance. Over his career, Neil has learnt a great deal about nurturing young businesses to fulfil their long-term potential and what it takes to deliver sustainable business performance.

Woodford investment Managemant (WiM) is his opportunity to bring all of that learning and experience into practice in an organisation that is grounded in his own priciples. designed from the ground up to match the needs and objectives of investors, WiM is a new and innovative fund management organisation founded in 2014.

prior to the launch of his new business, Woodford investment Management, neil will manage our funds as an employee of oakley Capital Management. oakley Capital is an asset management and financial advisory business with over $1.1 billion of assets under management which, through its private equity arm, is supporting neil’s new venture.


WIM applies a bottom-up approach to investment, with a strong focus on fundamentals, valuation and conviction.

investment opportunities are assessed on their own individual merits, and significant time and effort is expended to assess and understand a company’s long-term growth prospects, its competitive advantages, the sustainability and dependability of its cash flows, earnings and dividends and, of course, its valuation.

Neil Woodford

neil started working in the City at dominion insurance in 1981. He joined reed pension fund as a trainee equity analyst in 1983 and, after a spell in a

corporate finance role for tsB, started managing money at eagle star in 1987. the following year, neil joined the uK equities team at Perpetual in Henley-on-Thames, where he spent the next 26 years of his career crafting his distinctive investment approach and developing a reputation as one of the most highly respected and trusted fund managers in the industry. neil was awarded the CBe in 2013 for services to the economy.

25

1 the expected costs of managing and maintaining the investments include the fees paid to the fund managers and various additional costs, such as dealing costs, investment administration fees, custody and safe-keeping fees; the cost of running the fund range, the Investment Committee and its advisers; and any associated service taxes. these costs are in addition to the 1.5% annual management charge.

2 the expected costs of managing and maintaining the investments for this fund include a 0.2% allowance for the performance fee, based on the fund outperforming its benchmark by 1% each year.

the st. James’s place unit trust group is the manager of all our underlying funds, with investment decisions delegated to the list of fund managers set out above.

our range of funds and charges

Fund manager(s)Expected cost of managing

and maintaining the investments1

AXA Framlington managed aXa framlington 0.99

Continental European s. W. Mitchell Capital 1.38

Corporate Bond invesco perpetual 1.01

Emerging markets Equity Wasatch 1.31

Equity Income rWC 0.93

Ethical aberdeen 0.91

Far East aberdeen asia 0.92

Global Equity Blackrock, edgepoint, sands Capital

& Tweedy, Browne0.87

Global Equity Income Manulife 1.00

Global managed artisan partners 1.04

Greater European S. W. Mitchell Capital & Burgundy 1.20

Index linked Gilts Blackrock 0.74

International Corporate Bond Babson Capital 1.09

International Equity Magellan 1.00

Investment Grade Corporate Bond Loomis sayles 0.81

North American aristotle 0.87

Schroder managed schroders 0.83

Strategic managed threadneedle 0.89

UK & General Progressive BlackRock, J O Hambro & Majedie 1.27

UK & International Income artemis 1.24

UK Absolute Return2 Blackrock 1.48

UK Gilts Wellington Management 0.70

UK Growth Majedie 1.42

UK High Income Woodford 1.06

UK Income Majedie 1.28

Worldwide managed Select Equity, Burgundy & First State 1.19

2626

all our underlying funds are valued in sterling, with the price shown in singapore dollars, so what your might get back will be affected by the exchange rate between sterling and singapore dollars i.e. there is no hedging of this currency exposure.

further information about these funds and investments is available from your st. James’s place partner.

the full range of st. James’s place funds is set out below, colour coded to indicate their relative levels of risk. the special risk factors are explained on the following page; these highlight the most significant risks faced by each fund.

Funds Special Risk Factors

gilts (uK gilts) d f

index Linked gilts d f

investment grade Corporate Bond d

international Corporate Bond b d

Corporate Bond b d

uK absolute return a C i

strategic Managed a B d

schroder Managed a B d

aXa framlington Managed a B d

uK High income a

UK & General Progressive a

UK & International Income a

uK income a

equity income a f

uK growth a

international equity a B f

global Managed a B H

global equity income a B f

ethical a B H

global equity a B H

Worldwide Managed a B H

greater european a B

north american a B f

Continental european a B f

far east a B H

emerging Markets equity a B f H

IN

CR

EA

SI

NG

R

IS

Kspecial risk factors

27

The particular risks of each fund depend on the type of assets in which it invests. These particular risks include:

A – Equity riskthis fund invests in equities. the value of equities can rise and fall quite sharply at times. returns are not guaranteed and, whilst equities have tended to outperform over the long term, there have been periods when equities have fallen significantly in value over the short term.

B – Currency riskthis fund holds investments in other currencies, so the value of the fund may rise and fall due to fluctuations in exchange rates against sterling. There is no hedging of this non-sterling exposure.

b – Currency riskThis fund holds investments in other currencies and is passively hedged to remove any non-sterling exposure.

C – low interest rates: risk to incomethis fund invests in deposits and money market instruments. the return on these assets will be low in periods when interest rates are low.

D – Bond risksthis fund holds bonds issued by companies and governments. there is a chance that some of the companies or governments that issued these bonds will fail to make interest or capital payments, or other investors may believe the security of the government or company has declined, both of which would reduce the value of your investments. the values of bonds are also sensitive to changes in interest rates; for example, an increase in interest rates will usually cause a fall in the value of an investment in bonds.

E – Property riskthis fund invests mainly in property (i.e. land and buildings). property can be difficult to sell in a short period, so you may not be able to sell or switch out of this investment when you want to – we may have to delay acting on your instructions. the value of property can fall as well as rise, particularly if there are more people trying to sell than buy, and is generally a matter of a valuer’s opinion until the property is sold.

F – Concentrated portfoliothis fund holds a limited number of assets, typically fewer than 40 stocks. as such, its value is likely to fluctuate more than a widely diversified fund.

G – Commodities

this fund invests in commodities such as gold, oil and timber. the prices of commodities are influenced by demand, which is driven by global economic growth, and scarcity of supply of the various natural resources. these global influences, and the fact that natural resources are controlled by many different countries and governments, often cause commodities to fluctuate in value more than equities.

H – Emerging marketsthis fund holds investments in less developed economies and invests in less mature stock markets, so its value may fluctuate more than a fund which invests in developed economies.

I – Derivativesthis fund invests in derivatives. a derivative is a contract whose value changes depending on the value of an underlying asset. the fund buys derivatives from other institutions; if one of these institutions fails to meet its obligations when they fall due, this would impact the value of the fund.

the value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested. Past performance is not indicative of future performance.

the ‘st. James’s place partnership’ and the titles ‘partner’ and ‘partner practice’ are marketing terms used to describe st. James’s place representatives.Members of the st. James’s place partnership in singapore represent st. James’s place (singapore) pte. Limited, which is licenced by the Monetary authority of singapore and a member of the association of financial advisors (singapore). st. James’s place (singapore) pte. Limited is part of the st. James’s place Wealth Management group.

st. James’s place international plc (singapore Branch) is registered by the Monetary authority of singapore to conduct life insurance business in singapore.St. James’s Place International plc (Singapore Branch): Registered in Singapore Number T14FC0072F.

Office Address: 30 Cecil Street, #26-50, Prudential Tower, Singapore (049712).st. James’s place international plc is authorised and regulated by the Central Bank of ireland.

St. James’s Place International plc: Registered in Ireland Number 185345. Registered Office: Fleming Court, Flemings Place, Dublin 4, Ireland.

sJpa9002-Vr3 (02/15) sg

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