Asia Long-Term Unconstrained strategy

Launched in 2008, the Martin Currie Asia Long-Term Unconstrained (ALTU) strategy seeks to deliver sustainable returns in-line with Asian economic growth, with lower volatility than the market.

THE OPPORTUNITY

The Martin Currie Asia Long-Term Unconstrained (ALTU) strategy seeks to capture nominal Asia ex Japan GDP growth, by identifying Asian companies that can translate this into long-term returns to shareholders through sustainable profit and cash flow growth. Stockmarkets have not captured Asia’s long-term economic growth due to poor stewardship of capital; therefore the team aims to invest in companies with a disciplined record of capital allocation backed by strong governance structures.

INVESTMENT PHILOSOPHY

Key to this, is a focus on companies that are capable of translating the region’s economic growth into sustainable profit and cashflow growth. Such companies will be able to generate sustained returns on equity (ROE) in excess of their cost of capital. Our philosophy is as follows:

We aim to invest in businesses that are able to grow with the region, but which more importantly can translate that growth into good returns for shareholders.

This requires that we focus less on growth and more on companies with a franchise that can genuinely grow value, as measured by the free cashflow available to shareholders and retained earnings.

We seek to acquire businesses on a reasonable valuation, based on an in-depth assessment of their long-term potential.

Opportunities are scarce and when we find one, we aim to make a long-term capital commitment – thus minimising costs and maximising the positive effect of compounding high returns from a good business