Environmental, Social and Governance Report 2022

This report covers our Environmental, Social and Governance (ESG) activities over 2022. Our extensive engagements with portfolio companies form the bulk of our activities and as such, we aimed to illustrate the report with a series of case studies organised within our three focus areas. 

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Why Asia and Emerging Markets?

The fastest growth and some of the highest level of innovation is happening in Asian and Emerging Market economies. 

With this progress comes a burgeoning middle class with a propensity to consume and levels of company formation reminiscent of the US in the early 20th century.

But it’s also a complex market, requiring deep insight, local knowledge and a questioning, sometimes contrarian perspective to ensure opportunities are interrogated with a view to long-term success. 

It’s that different perspective that gives FSSA Investment Managers an edge.

Our high-conviction strategies

Asia Pacific

Our range of Asia Pacific strategies cover small, mid and large-cap companies. The portfolios are invested in quality companies that we believe have long-term, sustainable growth drivers and should benefit from Asia’s structural tailwinds. 

Global Emerging Markets

Our Global Emerging Markets strategies cover developing and frontier markets companies and are biased towards mid-cap companies that have the potential to grow much larger over time. We tend to favour dominant franchises operating in industries with long-term structural tailwinds. 

Why FSSA Investment Managers?

At FSSA Investment Managers we believe that to consider the future, you need to understand the past. We believe that preserving capital is the most important aspect of growing it. And we believe that looking at things differently is more important than looking at things too closely. With this distinct perspective, we look to invest in good people running good businesses who can deliver sustainable, long term growth. 

1988 team established

Our history reflects our long-term approach; we look for quality companies that we can buy and hold over time.

Absolute return mind-set

Our investment approach focuses on generating absolute returns for our clients. With every investment we make, we look at the potential downside and not just upside.

20+ investment professionals

Our team of specialists conduct fundamental analysis to find quality companies at sensible prices.

ESG fully integrated

Environmental, social and governance as an analysis is fully integrated into our investment process since the team’s establishment.

Learn more about FSSA

What are the risks?

Although all investments carry risk, the level of risk is dependent on the type of investment strategy and the underlying investments.  Generally, the higher the potential return of an investment, the greater the risk.

The risks of investing in global emerging markets strategies include:

Company risk

Investment in equities is exposed to risks due to changes in that company or its business environment.

Currency risk

For investments in international assets, which have currency exposure, there is potential for adverse movements in exchange rates to reduce their Australian dollar value.  

Emerging market risk

Emerging markets tend to be more sensitive to economic and political conditions than developed markets. Other factors include greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities. 

Equities risk

Equity securities are subject to changes in value, and their values may be more volatile than those of other asset classes.

As with any investment, there are no guarantees on the value of the investment or the income generated from it.  Investors may get back less than the original amount invested. For a full description of the terms of investment and the risks, please see the Product Disclosure Statement for each fund.

If you are in any doubt as to the suitability of our funds for your investment needs, please seek financial advice.

Our latest thinking

Balance and behavioural biases

As investors focused on quality, one can easily “fall in love” with an investment and be too forgiving in certain situations, potentially missing important warning signs or sell signals. One question that we frequently get relates to a common behavioural bias for quality investors: how do we balance admiration for a company without becoming too complacent?
  • Article
  • 8 mins

Addressing recent investor concerns on China

In response to the recent client interest around China’s stock market and the challenging performance year-to-date, we had a conversation with Martin Lau, managing partner and lead portfolio manager to a number of Asia Pacific and Greater China equity strategies.
  • Article
  • 6 mins

Resilience of the FSSA GEM Focus strategy in the event of a developed markets slowdown

In the FSSA GEM Focus strategy we own high-quality businesses which have competitive advantages such as strong brands, distribution advantages, cost leadership, or simply providing a service/product that customers cannot live without. Historically, this has given them pricing power and the ability to preserve margins despite adverse headwinds.
  • Article
  • 5 mins

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