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.
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