"At Johnston Asset Management, we believe that stock selection is the key to superior investment performance. We are growth stock investors, with a valuation discipline; we seek to construct portfolios of high quality companies that balance exceptional return characteristics and prudent control of risk. We are long-term investors and our portfolios have low turnover. "

History has shown that only a few companies dominate their industries year after year and consistently build wealth for shareholders. Unique business models or franchises allow these companies to generate cash flow significantly in excess of the capital required to run their businesses and often correspond with increased market share, expanding margins and visionary management. Companies that exhibit such characteristics offer earnings predictability, a margin of safety and solid performance in volatile markets. High quality businesses like these form the foundation of Johnston portfolios.

We believe that over time, stock prices follow earnings growth. We look for companies that can generate sustainable earnings and cash flow growth significantly higher than market averages. In particular, we believe that growth stocks, purchased when they are trading like value stocks, have the greatest potential for long-term appreciation.

At Johnston Asset Management, risk is managed in three ways. First, timing risk is eliminated by being fully invested. Second, portfolio risk is limited through appropriate diversification that does not dilute potential return since portfolios typically contain 20-50 positions. Third, security risk is controlled through our high quality screening process, our fundamental analysis and our sell discipline.