Key fund man­ager take­away:

Finweek English Edition - - COMPANIES & INVESTMENTS - – Ian Lid­dle, chief in­vest­ment of­fi­cer, Al­lan Gray

“It might be tempt­ing to at­tribute the fund’s per­for­mance to its hold­ings in Ja­pan, as that mar­ket has risen more than 30% year to date in yen terms. But while hav­ing a greater weight­ing in Ja­panese stocks than the bench­mark has aided per­for­mance some­what, this has been off­set by a sim­i­larly high weight­ing in the rest of Asia, where stock mar­kets have lagged their global peers. Over­all, the con­tri­bu­tion from cap­i­tal al­lo­ca­tion be­tween re­gions – driven as al­ways by our bot­tom-up re­search – has ac­tu­ally been neg­a­tive for the fund so far this year. In­stead, it has been our stock-pick­ing re­sults within most re­gions that ac­count for the bulk of the fund’s out­per­for­mance this year, as has also been the case since the fund’s in­cep­tion. The con­tri­bu­tion to rel­a­tive re­turn from stock- pick­ing has been broad- based this year and es­pe­cially strong in North Amer­ica and Asia ex-Ja­pan.”

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