Our Equities Investment Philosophy
The Aberdeen equity process dates from the early 1990s. The process is continuously evolving but its central tenets are: an emphasis on original research, the identification of businesses that we can understand and the avoidance of overpaying for stocks.
Our Investment Process
The strengths in our approach are:
Active management
We aim to add value by identifying good quality securities, defined chiefly in terms of management and business model, which are attractively priced. Good stockpicking is the key to our performance. We downplay benchmarks in portfolio construction since these provide little clue to future performance. Our asset managers avoid businesses that we do not understand or those with discriminatory shareholder structures.
Proprietary research
Our mainstream equity managers always visit companies before investing, making thousands of visits annually to existing and prospective holdings. Every contact is documented in detail. If a security fails our screens, we will not own it, irrespective of its index weight.
Long-term focus
Our mainstream strategies are simple; we buy and hold, add on the dips and take profits on price rises. This reduces transaction costs and keeps portfolios focused. We rarely pursue short-term returns for mainstream equity strategies, albeit for specialist portfolios, activity may be more dynamic.
Team approach
We employ around 90 equity investment professionals, based globally. Portfolio decisions are made collectively, and we avoid cultivating ‘star' fund managers. Cross-coverage of securities also increases objectivity and lessens reliance on individuals.
The Aberdeen equity process dates from the early 1990s. The process is continuously evolving but its central tenets are: an emphasis on original research, the identification of businesses that we can understand and the avoidance of overpaying for stocks.
Our Investment Process
The strengths in our approach are:
Active management
We aim to add value by identifying good quality securities, defined chiefly in terms of management and business model, which are attractively priced. Good stockpicking is the key to our performance. We downplay benchmarks in portfolio construction since these provide little clue to future performance. Our asset managers avoid businesses that we do not understand or those with discriminatory shareholder structures.
Proprietary research
Our mainstream equity managers always visit companies before investing, making thousands of visits annually to existing and prospective holdings. Every contact is documented in detail. If a security fails our screens, we will not own it, irrespective of its index weight.
Long-term focus
Our mainstream strategies are simple; we buy and hold, add on the dips and take profits on price rises. This reduces transaction costs and keeps portfolios focused. We rarely pursue short-term returns for mainstream equity strategies, albeit for specialist portfolios, activity may be more dynamic.
Team approach
We employ around 90 equity investment professionals, based globally. Portfolio decisions are made collectively, and we avoid cultivating ‘star' fund managers. Cross-coverage of securities also increases objectivity and lessens reliance on individuals.
http://www.aberdeen-asset.com.hk | client.services.hk@aberdeen-asset.com
The above is strictly for information purposes only and should not be considered an offer, or solicitation, to deal in any of the mentioned funds. Investment involves risk, emerging markets may have greater risk than developed markets. Subscriptions may only be made on the basis of the relevant offering documents, most recent annual financial statement and semi-annual financial statements if published thereafter. The value of investments and the income received from them (if any) may be volatile and could change substantially within a short period of time. Past performance is not a guide to future performance. The investment returns are denominated in the base currency of the fund. US dollar / HK dollar based investors are therefore exposed to fluctuations in the US dollar / HK dollar / base currency exchange rate.
BEFORE MAKING AN INVESTMENT, YOU SHOULD REFER TO THE RELEVANT OFFERING DOCUMENTS AND IN PARTICULAR TO THE INVESTMENT POLICIES AND THE RISK FACTORS. YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND THE RISKS ASSOCIATED WITH THE FUND AND SHOULD ALSO CONSIDER YOUR OWN INVESTMENT OBJECTIVE AND RISK TOLERANCE LEVEL. YOU ARE REMINDED THAT YOU ARE RESPONSIBLE FOR YOUR INVESTMENT DECISION AND SHOULD NOT INVEST UNLESS THE INTERMEDIARY WHO OFFERS OR SELLS THE FUND TO YOU HAS ADVISED THAT THE FUND IS SUITABLE FOR YOU AND HAS EXPLAINED WHY, INCLUDING HOW BUYING THE FUND WOULD BE CONSISTENT WITH YOUR INVESTMENT OBJECTIVE. IF IN DOUBT, PLEASE SEEK INDEPENDENT FINANCIAL AND PROFESSIONAL ADVICE.
This website contains information on Aberdeen International Fund Managers Limited ("AIFML") and the Luxembourg-domiciled mutual fund schemes which it manages. The information and products contained within this website are restricted to investors within Hong Kong. There are important legal and regulatory restrictions which apply to this website. These are laid out in the Disclaimer section which you are advised to read before proceeding. By proceeding, you are representing that you have understood and accepted the restrictions set out in the Disclaimer section.
Third party websites provided by hyperlinks on this website are completely beyond the control of AIFML. Accordingly, AIFML accepts no responsibility for the accuracy, completeness and legality of the contents of such third party website, or for any offers, services and products contained therein.
© Aberdeen International Fund Managers Limited
The above is strictly for information purposes only and should not be considered an offer, or solicitation, to deal in any of the mentioned funds. Investment involves risk, emerging markets may have greater risk than developed markets. Subscriptions may only be made on the basis of the relevant offering documents, most recent annual financial statement and semi-annual financial statements if published thereafter. The value of investments and the income received from them (if any) may be volatile and could change substantially within a short period of time. Past performance is not a guide to future performance. The investment returns are denominated in the base currency of the fund. US dollar / HK dollar based investors are therefore exposed to fluctuations in the US dollar / HK dollar / base currency exchange rate.
BEFORE MAKING AN INVESTMENT, YOU SHOULD REFER TO THE RELEVANT OFFERING DOCUMENTS AND IN PARTICULAR TO THE INVESTMENT POLICIES AND THE RISK FACTORS. YOU SHOULD ENSURE THAT YOU FULLY UNDERSTAND THE RISKS ASSOCIATED WITH THE FUND AND SHOULD ALSO CONSIDER YOUR OWN INVESTMENT OBJECTIVE AND RISK TOLERANCE LEVEL. YOU ARE REMINDED THAT YOU ARE RESPONSIBLE FOR YOUR INVESTMENT DECISION AND SHOULD NOT INVEST UNLESS THE INTERMEDIARY WHO OFFERS OR SELLS THE FUND TO YOU HAS ADVISED THAT THE FUND IS SUITABLE FOR YOU AND HAS EXPLAINED WHY, INCLUDING HOW BUYING THE FUND WOULD BE CONSISTENT WITH YOUR INVESTMENT OBJECTIVE. IF IN DOUBT, PLEASE SEEK INDEPENDENT FINANCIAL AND PROFESSIONAL ADVICE.
This website contains information on Aberdeen International Fund Managers Limited ("AIFML") and the Luxembourg-domiciled mutual fund schemes which it manages. The information and products contained within this website are restricted to investors within Hong Kong. There are important legal and regulatory restrictions which apply to this website. These are laid out in the Disclaimer section which you are advised to read before proceeding. By proceeding, you are representing that you have understood and accepted the restrictions set out in the Disclaimer section.
Third party websites provided by hyperlinks on this website are completely beyond the control of AIFML. Accordingly, AIFML accepts no responsibility for the accuracy, completeness and legality of the contents of such third party website, or for any offers, services and products contained therein.
© Aberdeen International Fund Managers Limited