Value-Driven Enviro-Conscious Fund Finds Place in Emerging Asia

Pangolin Investment Management founder and principal James Hay discusses:  The Fund:  - Positioning - value not small cap -- research house that "occasionally buys stocks"; - Pangolin is an absolute return fund - “sustainable” credentials - no timber or plantation companies - and no cyclicals;  - Why size - tiny - issues;  - Asset allocation; MY - ID - TH - SG;  - Investment details: > no. of companies invested > no of companies under analysis > preferred sectors> Growth drivers: MY/TH/SG;  - Investment conditions - two-month notice period for redemptions & fees - 1.5% annually - 15% performance fee above high watermark - ISSUES;  - Fund performance - Pangolin Asia Fund since 2004 - performance - annualised return;  Malaysian Market:  - Historically a Malaysian bull -- plus you live here (since 1993) - but has since 1998 been the most undervalued market in Asia .. as well as being the “least understood” - issues;  - Valuations - undemanding in small cap space - issues;  - Whether recent rise reflects dearth of opportunities;  - Small cap - value traps - thin liquidity - need for catalysts;  - "Patience" -- details -- investor patience - issues; - Malaysia “undervalued” historically -- still so?  Company Management - Management calibre quite critical for long-term holders like yourselves -- issue of major ownership and poor enforcement of market governance;  - How worrisome has the recent spate of privatisations and buyouts been;  - In the wake of Yeo Hiap Seng’s exercise you mentioned that you expect many more to follow - issues;  - Whether feels major owners have a duty to offer a fair price to minorities;  - Institutional framework: what more would you want and expect institutional funds to do on monitoring companies; Elections  - Malaysia’s nuances - mud-slinging / shenanigans - "the norm" in developing nations - issues;  - How Pangolin irons out these concerns.See omnystudio.com/listener for privacy information.