Pacific Horizon’s (PHI)’s performance has started to improve over the past few months, yet the manager thinks that there is still considerable potential for the portfolio. He believes that some of the themes that he is focusing on could radically alter all our lives and that many Asian companies will be at the forefront of this change.

The portfolio’s substantial exposure to the technology sector is only one strand of PHI’s approach to investing in fast-growing companies. This update examines the manager’s growing interest in Vietnam, for example. It also looks at the revisions that PHI is making to its discount control mechanism.

In a world of low growth and considerable uncertainty, investors have been favouring defensive and higher yielding but low-growth companies. The manager thinks that, sooner or later, investors may conclude that growth stocks offer a more logical path to long-term prosperity.