Unlike the major markets where well managed smaller company funds usually outperform bigger company funds, the Asia Pacific excluding Japan sector usually sees bigger company funds performing better. This sector performed very well in the first three months of this year but recently there has been quite a lot of profit-taking and the Hang Seng index has shown the smallest rise of all the main stockmarket indices since the beginning of the year.
I see this as a buying opportunity as the outlook for well managed funds in this sector is still excellent.
Tulloch certainly has an outstanding record. His fund rose by around 106 per cent over five years to May 1 and has increased further since then.
The fund is fairly widely spread at the moment, with 30 per cent in greater China, including Hong Kong and Taiwan, around 29 per cent in South-east Asia, 18 per cent in Australasia, 8 per cent in Korea and over 6 per cent in the Indian sub-continent.
Sector breakdown is also fairly widely spread, with 23 per cent in financials, 21 per cent in consumer shares, 20 per cent in industrials, 10 per cent in technology and the rest spread widely.
The biggest holdings include New Crest Mining, Toll Holdings, Brambles Industries, China Telecom and the 101 Corporation which is a producer of palm oil.
This fund is among the most conservatively run. Its record speaks for itself and I recommend it.
Other funds that I like in this sector are First State Asia Pacific leaders fund, Martin Currie Asia Pacific, Jupiter Asian and Aberdeen Asia Pacific.