About Us
We live in, and invest from, the heart of one of the fastest growing regions in the world. With Asia now representing 75% of the Global Emerging Markets universe, understanding this region remains critical to long-term outperformance.
The disciplined application of our philosophy through all stages of our process creates high conviction strategies with attractive valuation characteristics and active returns that are negatively correlated with the peer group who typically favour a quality / growth approach.
Investment Process
Our investment process consists of four stages: Idea generation; fundamental analysis; portfolio construction; risk control and review. Proprietary screens are first used to identify valuation outliers to systematically exploit behavioural sources of mispricing. The GEM Focus team then conducts extensive fundamental research to validate the screen’s signal using a differentiated approach to valuation by focusing on a company’s ability to generate sustainable earnings. Stocks that pass through this process with high upside potential and high shared conviction make it to the team’s Conviction list. Stocks from this conviction list become the core positions in our GEM strategies. Risk control and review is embedded at all stages of the process and conducted by the GEM focus team itself, senior management and our independent risk oversight team.
ESG
The team incorporates ESG issues into its fundamental analysis and decision-making process (in cases where these factors could have a material impact on a company’s valuation and financial performance). This process relies on a proprietary fundamental research process to assess all material factors. The team engages with the companies they have invested in and vote their proxies on all resolutions (except when it is not in the best interests of a client). Specifically:
- The team explicitly incorporates relevant ESG issues into every aspect of their activities as fundamental equity investors, both before making investment decisions as well as during the time an investment is held in the portfolios
- As responsible stewards of Eastspring’s clients’ assets, they maintain a dialogue with the entities invested in (where this is feasible)
- The team utilises third-party ESG data and research vendors in order to assist with the due diligence and ongoing monitoring processes.