Sustainable Emerging Markets Strategy
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We believe active country allocation and stock selection are crucial for investing in EM equities. Macro factors, such as future economic growth and currency movements, are critical drivers of stock returns, as well as anticipating risk. At the company level, we focus on identifying businesses with the ability to generate durable earnings growth, which we believe will benefit long-term investors in these markets. Sustainability considerations are an important aspect of our investment approach to emerging markets and broader economic development.
Competitive Edge
Our deep investment experience and long-standing process allow us to navigate complex economic, market and political dynamics, which is critical to investing in EM stocks. EM is a heterogenous asset class and we assess investment opportunities from both a top-down and a bottom-up perspective, which sets us apart from our peers, many of whom employ bottom-up only strategies.
Core Strategy |
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As core investors with a bias toward quality growth, we believe the portfolio is well positioned to capture emerging market (EM) opportunities through diversified drivers of active returns and risk without a style bias towards growth or value. |
Integrated Approach |
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With our integrated investment approach, we analyze a country’s macro factors that we believe set the context and conditions for equity returns, as well as anticipate macro risks. From a bottom-up perspective, we look for companies with strong management teams with attractive growth opportunities, solid balance sheets and high free cash flow growth. Our top overweight positions in the portfolio combine attractive country environments with quality growth stocks. |
Sustainable Development |
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The following sustainability themes are reflected in the portfolio: responsible energy transition; sustainable production and circular economy; access and affordability, decent work and innovation and responsible corporates. In addition, the strategy seeks a lower carbon footprint than the benchmark and strives to align with the objectives of the Paris Agreement. |
