Fund managers diary
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David Li is the manager of the Impax Asian Environmental Markets and Impax Asian Environmental Markets (Ireland) funds. His diary runs from September 5-11.
Monday: I am at my desk at 7.30am for an informal discussion with our economist before the markets open. We discuss developments in the European sovereign debt crisis and market fears of a recession in America. Keen to assess the potential impact of inflation and macro tightening on companies in our Asian Environmental Markets portfolios, I make calls to two Chinese industrial companies. I decide that although the long term fundamentals of both businesses remain strong, they are likely to suffer a near-term squeeze on their profit margins.
Later, I call our Asian and technology specialists in London and we decide to reduce the weighting in one company but maintain it in the other. I end the day by finalising dates for a trip to Britain to meet investors in the Asian Environmental Markets (Ireland) fund in November.
Tuesday: I start with a round of conference calls to companies we invest in, including a Singapore firm that produces a re-usable waste container. We talk about the impact of the macroeconomic slowdown on global trade, and the company’s business strategy. I am pleased to learn that the company is faring better than analysts at brokers suggest, and remain comfortable with our position.
Lunch with a broker. We chat about “marketmoving” news and stock ideas, and debate developments in light-emitting diode technology. Afterwards I dial the team in London for our weekly investment committee session, in which we discuss performance and review some new candidates for inclusion in our environmental investment universe of over 300 Asian stocks. Before heading home I make arrangements for the first Asian board meeting of Impax Asian Environmental Markets. The plan is to visit regulators, factories and brokers in Beijing, Guangdong and Hong Kong to get first-hand updates on policies and business activity. (Fund managers diary continues below)
Wednesday: At a conference targeted at companies likely to benefit from China’s 12th five-year plan, I have three productive meetings - with a waste paper recycler, a mixed metals recycler and a firm involved in power distribution. Back in the office I do some modelling and valuation work based on companies’ interim results.
Thursday: The day begins with a conference call to a sell-side analyst to discuss prospects for the Indonesian gas market after recent rises in upstream gas prices. It seems the situation is still very uncertain, and we decide to continue monitoring the sector closely.
I have lunch with the management team of a firm that makes power storage devices for solar and wind farms and electric vehicles. The products are exciting but have significant technology risk, and the business is at an early stage.
The day ends with a conference call to our London-based marketing team to discuss a report we are writing about investment opportunities.
”The factory is large, efficiently run - and even ’beautiful’, by Chinese standards”
Friday: I take a ferry to Shunde in Guangdong province to meet a maker of plastic pipes. The factory is large, efficiently run - and even “beautiful”, by Chinese standards. I enjoy a fillet of bream with the managers in their canteen, which is built over a pond in which they farm their own fish.
Saturday: Up early for a game of golf with an old friend who is starting his own fund management business. I don’t get any birdies; he does.
Sunday: A family barbecue with mooncakes to celebrate the mid-autumn festival - keeping an eye on the calories.
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