Strategy
Investment Objective
To increase the value of its shares, over the long term, through growth in the value of its investments. The fund invests mainly in a widely diversified portfolio of stocks of emerging market companies.Investment Approach
- ESG integrated approach that seeks to invest in “forgotten” companies that are under-owned by mainstream investors and that are expected to experience fundamental improvement.
- We believe this approach provides asymmetric risk/reward that can provide us a downside anchor with the potential to compound on the upside.
- In our search for unloved emerging market companies, which we think have strong turnaround potential and offer strong downside risk management, we consider environmental, social, and governance (ESG) factors as important components in making fulling informed decisions.
- Risk management is an integral part of the portfolio construction process.
- Environmental, social and governance ("ESG") factors with particular focus on those considered most likely to have a material impact on the performance of the holdings or potential holdings in the funds’ portfolio are assessed. These ESG factors, which are incorporated into the investment process alongside financials, valuation, macro-economics and other factors, are components of the investment decision. Consequently, ESG factors are not the sole driver of an investment decision but are instead one of several important inputs considered during investment analysis.
Portfolio Construction
- Typically 50-80 stock portfolio
- Expected 4-8% tracking error
- Individual position typically 0.5% to 5%, position sized by prospective risks
- Country ranges +/-10% absolute deviation from the benchmark
- Sector ranges +/-15% absolute deviation from the benchmark
- Reserves are normally less than 5%, max 10%
Past performance is not a reliable indicator of future performance.