Global Emerging Markets

Tap into the world’s growth engine with a different perspective.

Tap into some of the world’s fastest-growing markets by investing into a diverse set of high quality companies across the Global Emerging Markets.

Dominant consumer franchises

With favourable demographics and low consumption per capita – particularly in Southeast Asia and India – we believe dominant consumer franchises can offer good growth potential over the long term.

Strong alignment, innovative culture

Decisions taken by company management in both good and bad times can significantly affect its long-term outlook. We look for strong alignment with management and a culture that embraces innovation.  

High quality financials

As income levels rise, we believe credit penetration in emerging markets will continue to increase. We aim to back the most efficient and risk-aware financial franchises to gain market share through the cycles. 

Internet and technology

Rising smartphone usage, young demographics and large pools of IT talent have led to burgeoning technology markets. With an ability to reinvest at high rates, we believe market leaders will continue to increase their market share and generate long term growth. 
 

About the strategy

Investing in the Global Emerging Markets requires applying a different mind-set and toolbox to each individual country before assessing the bottom-up factors.

Rasmus Nemmoe, Portfolio Manager, explains the challenges of investing in the Global Emerging Markets.

Global Emerging Markets

Our investment philosophy

FSSA Investment Managers’ investment approach is centred on identifying quality companies, buying them at a sensible price and holding for the long term. 

We look for founders and management teams that act with integrity and risk awareness; and dominant franchises that have the ability to deliver sustainable and predictable returns over the long term.

We are research-driven, bottom-up investors1, carrying out detailed fundamental analysis2 to identify high quality companies to invest in for the long term. We travel extensively to meet with companies to assess the quality of management and their track record of executing long-term strategies; and supplement this with a qualitative and quantitative analysis of the company’s ability to compound growth in excess of the cost of capital.

1. Bottom-up investing is an investment approach that focuses on the analysis of individual stocks and de-emphasizes the significance of macroeconomic cycles.
2. Fundamental analysis is a method of measuring a security's intrinsic value by examining related economic and financial factors.

Our approach to sustainability

Environmental, social and governance (ESG) analysis is fully integrated into our investment process.

Our approach to responsible investing has been shaped by an emphasis on stewardship and the belief that quality managers and good governance should ensure that environmental and social concerns are rightfully addressed.

To us, sustainability is not just a label, but a set of values by which we operate.

As a firm, we have been signatories to the Principles of Responsible Investment (PRI) since 2007 (we view it as a minimum standard) and are constantly striving to better understand how ESG and sustainability issues impact long-term investment performance.

Case study: Reducing plastic waste

Godrej Consumer Products Limited (GCPL) is a dominant FMCG (fast-moving consumer goods) company, based in India and operating in global emerging markets. It's 63% owned by the Godrej family, one of the oldest business houses in India, with a strong reputation for ethical business practices.

FSSA Investment Managers has been a shareholder of GCPL for many years and has met with its management on numerous occasions. Chairperson Nisa Godrej is the sustainability champion, and she is driving diversity and inclusion efforts. There is an executive Corporate Social Responsibility committee, which reports to the board, and a green sub-committee.

Projects such as plastic reduction are coordinated across the business, from design to procurement, and all through the supply chain. GCPL has published its sustainable packaging targets and to help it achieve these goals, we introduced GCPL to Polymateria, a UK-based biodegradable plastics company, to discuss possible alternatives to plastic packaging.

Godrej and Polymateria have since identified a shortlist of solutions and are also working collaboratively to help develop and improve India's biodegradable ISO standards.

 

Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of FSSA Investment Managers' portfolios at a certain point in time, and the holdings may change over time.

Investment Insights

Albert Einstein famously said, “Not everything that can be counted counts and not everything that counts can be counted.” This holds true in many situations, but we think it is especially true when it comes to risk management.
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Over the past few years, global emerging market (GEM) investors have dealt with a series of challenges, including a surging pandemic, local lockdowns and widespread travel restrictions.
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In almost every meeting that we have with management teams, we will ask about incentivisation. In our view, it is an important question and the answer can be highly revealing about an organisation’s culture and behaviour.
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  • 4 mins

Meet the manager

Rasmus Nemmoe

Portfolio Manager

Price & performance

Strategy Overview

Key Facts

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* This is an annualised interest rate from the past seven days. For actual performance for our Cash Funds, please view the performance page.
is recognised as a Responsible Investment Leader 2021 by the Responsible Investment Association Australasia (RIAA). This acknowledges our commitment to responsible investing; our explicit consideration of environmental, social and governance factors in investment decision making, our strong and collaborative stewardship; and our transparency in reporting activity, including the societal and environmental outcomes being achieved.

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