Q&A: Veritas Asian Fund

Q.1. Tell us a little bit about how the fund is managed?

Investment Philosophy

The Strategy is designed for long-term investors who wish to build capital over a number of years through investment in a portfolio of equity and equity related securities in companies located in Asia Pacific region excluding Japan.

There are two important aspects of our investment philosophy. Firstly, we believe in the concept of total return, comprising of dividend yield, earnings growth and possible long term currency appreciation. This concept looks at stock returns from a holistic point of view. Our belief is that if one can derive a large part of expected return from dividend yield, it reduces the burden of EPS delivery and therefore reduces volatility of share prices which usually come from a mismatch of earnings expectation with delivery.

Secondly, we believe excess return can be generated from selectively investing in companies leveraged into economic and industry cycles across Asia as well as com