Our investment approach is 'bottom up'. We seek to identify companies with good long-term prospects and to select amongst them those whose shares offer attractive absolute returns. We maintain a search for global leaders across the world's stockmarkets.

Our definition of world leadership is quite idiosyncratic. We look for companies that:

• operate successfully in a home market and are judged to be amongst the market share leaders.
• have successfully developed operating exposure to other regions of the world, both developed economies and developing economies. Generally companies with sales over a third outside their home market may have demonstrated this ability.
• possess a range of attributes that confer an economic advantage against also-rans in the relevant industry. This 'competitive advantage' is often displayed by an ability to take market share outside a home market.

Valuations are principally framed on return based methodologies (the expected return to an investor) including discounted cash flow analysis. To a lesser extent we consider peer group comparisons and replacement cost.

We believe that companies sustain economic returns on shareholder capital by prudent investment of the cash flows derived from their activities. We therefore assess the rationale behind the spending plans of the companies considered for investment through meetings with company management .

Our overall approach is to afford plenty of upside potential whilst maintaining safety of principal.