"Its two main customers are Scania and Volvo; Brazil was Scania’s largest market in 2010, and Volvo has seen its markets in Russia and Eastern Europe grow by over 100 per cent in the last year."
"On 11 times reported earnings and with increasing demand from its global customer base, Castings is at a good entry point at present."
According to FE Data, John McClure’s Unicorn UK Income fund is the only vehicle in the unit trust and OEIC universe that holds Castings in its top ten.
Chris Hutchinson (pictured right), manager of Unicorn Outstanding British Companies
"I’ve just met with the chief executive of IMI Martin Lamb, and I’ve got to say I was very impressed."
IMI is a global engineering group focused on the precise control and movement of fluids in machinery. It is listed on the FTSE 100 index.
"The company is geared into cyclical profit, but it has an array of structural drivers in place as well, which will provide it with an element of protection if another recession were to hit."
"Half of IMI’s revenue comes from its speciality areas – higher margin products, and the low-cost emerging markets space. The aim is to increase this margin to 70 per cent of its business.""It has a particular focus on the Czech Republic, Mexico, India and China. Around 20 per cent of revenue comes from these markets at present, but the aim is to make this substantially higher through M&A activity. They’ve just recruited Ian Whiting, whose remit is accelerating take-over deals in emerging markets."
"IMI also wants to shift its base perspective to emerging markets. The company aims to get half of its business operating in low cost countries before long."
Sixteen open-ended funds hold the stock in their top ten, including Marlborough Special Situations and Standard Life UK Equity Unconstrained.
"Clarkson is a market leading ship broker. The industry has been hit this year by a poor supply of ships, but global demand is alive and well."
"Emerging markets make up a big proportion of global trade, which is growing all the time. China, in particular, is building an enormous number of shipping yards – this company is a direct play on this theme."
HSBC UK Smaller Companies and Premier Castlefield UK Smaller Companies both hold Clarkson in their top ten.
Marina Bond, manager of the Rathbone Recovery fund
"Renishaw is a world leader in metrology – the science of measurement. The group manufactures high precision products for use in a diverse number of industries worldwide, including automotive, aerospace and healthcare."
"China is currently Renishaw’s largest individual market, accounting for 19 per cent of group revenue. Sales to the Far East region as a whole grew by 61 per cent in the year to 30 June 2011, and now represent 40 per cent of total sales."
"The business continues to grow at a healthy rate and the outlook is positive."
Renishaw appears in the top ten holdings of four open ended funds, including Harry Nimmo's Standard Life Investments UK Smaller Companies fund. The BlackRock Smaller Companies investment trust also holds the company in its top ten.
Fraser Mackersie (pictured right), manager of Unicorn Free Spirit
"A number of UK franchises are increasing their exposure to emerging markets. Seventy per cent of Tesco's profits come from the UK, but the likes of China and Korea are contributing more and more to the business. GlaxoSmithKline is also beginning to shift away from developed markets."
"Standard Chartered is more of a direct play on emerging markets however, as close to 100 per cent of its profits come from east of the Suez. It's held up far better than UK retail banks."
Graham Spooner, investment adviser at The Share Centre