Defensive approach pays off

Neither manager runs a portfolio which is at its best in a rising market, but in the long term it is an approach that has triumphed over more aggressive strategies

With share prices in the Far East excluding Japan region up 30% in the past six months, managers could be expected to become less defensive in their investment approach. Hugh Young from Aberdeen and Angus Tulloch from First State, however, are maintaining positions in areas traditionally considered mainstays of defensive investment. The managers of Aberdeen Far East Emerging Economies and First State Asia Pacific follow long-term investment strategies and do not get caught up with momentum investing, preferring to buy quality companies with good balance sheets. This approach has led to b...