HEAD-TO-HEAD: Aberdeen vs Eastspring

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Since both funds run very concentrated portfolios, they don’t need many people on their team, according to Yew.

The Aberdeen global Japanese equity team is managed by the firm’s Japan desk, which consists of a six-member team led by Kwok Chern Yeh. Kwok first began his career with Aberdeen in Singapore in 2005 and relocated to Tokyo in January 2011 to replace his predecessor, Pascal Masse.

The Japan desk also manages the Aberdeen Global Japanese Smaller Companies Fund, which has delivered laudable long-term returns, according to Yew.

The Japan desk also gets input from the Singapore-based team, Yew noted.

Eastspring’s fund is led by Singapore-based Dean Cashman, who has a team of five in the Lion City. He has managed the fund since 2006 and has around 26 years of experience with Japanese equities, according to Yew.

“Every member of the team has a say and they discuss investment ideas together.”

Commenting about whether or not it is better to have a team based in Tokyo, Yew said that having staff on-the-ground is always going to be advantageous.

“But that is not going to be a primary concern or major factor for us,” he said, noting that Eastspring’s fund has done well due to the team’s stability and experience.

As for Aberdeen, Yew said he is concerned over the stability of its Tokyo-based team.

According to Yew, the team saw several departures in recent years, with the current team now having less experienced members than some of its peers, he said.

“[Manager] Kwok is the ultimate decision maker, but they have a such a small team in such a concentrated portfolio, so each member is valuable.”

Nevertheless, Yew said that the stability of the team has improved and the firm is considering adding members. “They don’t want to rush into hiring just any candidate so they are looking for a quality candidate before they make a hire,” he added.

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