This whole process demonstrates the focus on risk, reward and return. Where some funds may have sudden accelerations in performance only to peg back, this will be steady capturing the upside as well as protecting (as far as possible) the downside.
For investors Asia appears unfavourable and has done so for the last three years due to (perceived) relatively poor returns. Taper talk in 2013 again highlighted the fragility of the region. Investors have therefore turned to developed markets where returns have been stronger. However, 2014 has surprised many with Asian markets being some of the strongest year to date.
First State and Aberdeen have traditionally dominated these markets for investors but they have in recent months tried to discourage investors as their funds become too big, and there becomes a danger that performance suffers as a result.
For investors the available universe of funds remains narrow but within this there are clearly some really talented managers meaning that investors don’t need to go where they have traditionally gone.
One these managers is Samir Mehta who manages the JOHCM Asia ex Japan Fund alongside his colleague Cho-Yu Kooi who manages the Small and Mid-Cap Fund.
The fund has an excellent track record and his strategy and insight is fascinating and for this reason the fund is worth consideration.