IN FOCUS: INTERNATIONAL CONTAINER SERVICES ‘ HIGH MARGINS FOR A PORT’

International Container Services started out as a port company in the Philippines, but it has expanded across Africa, Asia, Europe and the Middle East.

Throughout this expansion it has shown how it can optimise and grow port operations across the world. When we started investing, more than 60pc of the firm’s business was in the Philippines, whereas that figure is about 30pc today.

The attraction of this company is that it has a fabulous management team that understands the need for margins. The firm targets a 50pc profit margin, which is good for a port operator.

Since we started investing 10 years ago, the company has been adding ports across the globe to its portfolio. There have been three key benefits to this growth: the company has added capacity by buying new sites, it has grown the ports it has purchased and it has stimulated business in each country by adapting its sites to allow for shipping containers to be used.

The company is disciplined. In the past three years turnover has been growing by 7pc per year and margins have improved from 45pc to 47pc.

What has been your biggest mistake?

We invested in satellite companies, but the rate of technology change has been difficult for the sector. We’ve been an investor in AsiaSat for some time but have now pulled back quite significantly.

How much do currency fluctuations play a part?

Hedging a currency is too expensive and most of our investors don’t want to see that. If we have a strong view then we may slow down certain investments, but in the long term fluctuations are less important.

Do you have your own money invested?

I do, I’m a shareholder.

How are you paid?

The trust charges a fee of 1.1pc and the senior management share in the performance fees.

What would you have been if you weren’t a fund manager?

An architect. I’ve always enjoyed solving mathematical problems.