Translating Asia's growth

Andrew Graham, Portfolio Manager, Head of Asia
Legg Mason Global Asset Management

Asia’s growth story and its attractiveness as an investment destination are well known – however, the region’s stockmarkets have not consistently delivered this growth to investors. The objective of the Asia Long-Term Unconstrained strategy is to enable a clearer translation of nominal GDP growth into the returns we deliver to clients. The key to this is a focus on companies that are capable of translating the region’s economic growth into sustainable profit and cashflow growth. We use a ‘buy and hold’ investment approach in a high conviction portfolio, employing accounting diagnostics techniques to gain an in-depth understanding of company fundamentals and place a strong emphasis on corporate governance. The outcome for our clients is a portfolio that efficiently captures the Asian growth story with lower volatility and low turnover.