View more on these topics

Legg Mason likes sound of the Pacific

Legg Mason Investments has introduced the Legg Mason Asia Pacific fund, an Oeic that invests in companies based in the Asia Pacific region, excluding Japan.

The fund will contain between 50 and 70 holdings and will be managed by Batterymarch Financial Management, a Boston-based subsidiary of Legg Mason. It has managed emerging markets portfolios since 1987 and in 1995, it became a subsidiary of Legg Mason.

The lead fund manager, David Lazenby, will take a bottom-up approach to stockpicking. He will look for companies that dominate their particular markets, with above average growth and reasonable stock valuations. Approximately 500 stocks in the Asia Pacific region on a daily basis to rank the relative attractiveness of stocks.

The investment team supplements these rankings with primary research. They meet around 350 companies a year to get an idea of how each business is run and the quality of management. This helps to generate a list of stock ideas for possible inclusion in the portfolio.
Emerging Asia is looking ripe for investment partly because it has benefited from the West&#39s tendency to outsource. The costs of labour and production are low within the region and outsourcing has created jobs in areas such as customer services. This has led to a growth in domestic consumption, with countries such as India and China producing goods for their own country, not only for export.

However, the Asia Pacific region can be highly volatile and investors who are attracted by its rapid growth rate, relative to the West, will need to take this risk on board.

According to Standard & Poor&#39s the Legg Mason Japan equity fund is ranked first out of 60 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to February 2, 2004.

Recommended

6.8% income deal on HSBC six-year plan

HSBC Asset Management is offering a capital and income plan which returns the investor&#39s capital at the end of six years and offers a fixed income payment of 6.8 per cent after year one. For the remaining five years, the plan will return variable income payments of between zero and 6.8 per cent a year. […]

Letwin promises to cut a tax a year

Shadow chancellor Oliver Letwin has promised to cut a tax a year if his party is reelected. As part of the Conservative&#39s tax proposals Letwin has pledged to reduce the burden for small businesses.

Redress paid only where it is due

The letter from BMG Williams (Money Marketing, January 8) could have left readers with the impression that approaching the Financial Services Compensation Scheme is an easy way for consumers to get compensation. The FSCS is a fund of last resort for customers of authorised firms, not a bottomless pit. We only pay compensation if a […]

Talkback

“Yes, I think if groups of IFAs joining together like this gives advisers more strength to take on the FSA then it is a good thing. At the minute, I get the feeling that most IFAs are going to have to join really large groups or stay as small niche businesses.”Wesley Haslett,Andrews Insurance Life & […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment