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Paulo Salazar
Head of Emerging Markets Equities
Seeking return sustainability as an alpha driver
We focus on finding companies that may generate solid returns on equity over time and higher growth than the industry average. These companies are viewed through a multi-dimensional lens that integrates the entire value chain across countries to select long-term winners.
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”The structure of the emerging markets is fundamentally different from that of the developed markets. For our sustainable approach, our process is designed to identify the ESG leaders with a sound ESG profile..
Combining sources of performance
Our investment process combines integration of non-financial criteria, quantitative filtering of securities, fundamental analysis and bottom-up [1]selection of stocks. The consistency of our processes, the robustness of our stock-picking, and the relevance of our risk management all contribute to the quality of our strategies.
Enhanced sustainability
For our portfolios, we seek to systematically choose stocks with the best sustainability profiles. We have implemented specific ESG performance indicators for emerging markets with the aim to select companies with a focus on shareholder value creation while minimising, for example, the carbon footprint of our strategies. This is at the heart of our value proposition.
Capturing growth
We offer strategies that aim to capture growth in emerging markets by combining thematic and fundamental stock selection. Through their track record and robustness, they demonstrate the quality of our teams, the consistency of our investment process, and the effectiveness of the combination of management approaches in capturing sustainable growth in emerging markets.
[1] The bottom-up approach consists in selecting securities to build the portfolio independently of the macroeconomic vision, unlike the top-down approach, which firstly analyses the macroeconomic environment before then selecting securities from the preferred sectors and countries.
Figures are worth a thousand words
€4.3bn
AuM
+25
years investing in Emerging Markets
+15
years in Sustainable Emerging Markets Investing
Thematic Investing with high growth potential
Independent fundamental and ESG research driving our convictions and guiding our investment choices in companies that stand to benefit from thematic tailwinds, higher quality and sustainable growth potential.
Building performance
Our investment philosophy is based on four pillars: ESG integration, active fundamental management, sustainable growth (selecting companies that grow faster than the industry average) and structural growth: we want to select companies that are best placed to take advantage of structural trends – health and wellness, digitalisation and innovation, climate change, resource and waste management, demographics – as applied to emerging markets.
Reducing risk
Our portfolios are focused on companies where we have the strongest convictions. They are constructed to offer strong sector and country diversification. Stocks are ideally held for 3 to 5 years to take full advantage of the growth potential and potentially high returns offered by emerging markets. The robustness of our ESG process provides non-financial insight with the aim of capturing more value and reducing risks not identified by traditional analysis.
Realising opportunities
With over 25 years of expertise, our strategies have proven their robustness and ability to provide exposure to high-growth markets with strong historical returns and real diversification through diversification of holdings, while meeting the highest ESG standards..
FUNDS
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Main risks on Emerging Equity Strategies
- Risk of loss of capital
- Equity risk
- Currency risk
- Liquidity risk
- Concentration risk
- Derivative risk
- Emerging market risk
- Risk on A-Shares (China)
- Index provider risk
- External factors risk
