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Global Emerging Markets Leaders
The strategy invests in 25-60 high-quality emerging markets companies that we consider to be well positioned to contribute to, and benefit from, sustainable development.
Download overviewThe Global Emerging Markets Leaders strategy launched in April 2020. It invests in 25-60 high-quality emerging market companies that we consider to be particularly well positioned to contribute to, and benefit from, sustainable development.
Leaders simply means that the strategy is focused on companies with a market cap value of at least USD1 billion.
Strategy highlights: a focus on quality and sustainability
- Companies must contribute to sustainable development. Portfolio Explorer >
- We invest in high-quality companies with exceptional cultures, strong franchises and resilient financials. How we pick companies >
- We avoid companies linked to harmful activities and engage and vote for positive change. Our position on harmful products >
- Our approach is long-term, bottom-up, high conviction and benchmark agnostic
- We focus on capital preservation as well as capital growth – we define risk as the permanent loss of client capital
Latest insights
Quarterly updates
Strategy update: Q3 2024
Global Emerging Markets Leaders strategy update: 1 July - 30 September 2024
Most of the quarter’s activity happened in September, as is often the case. It is in such moments, like the biggest market moves since 2009 in China and Hong Kong and rising geopolitical tensions in the Middle East, that we remain grateful for our long-term philosophy. It gives us the ability to step back in moments of such volatility and reminds us to focus on the more important, bottom-up drivers for the companies we own on your behalf.
Over the course of this quarter, we have sold out of two positions in China, unfortunately before the recent rally. The capital raised was mostly reallocated into other Chinese names where we had greater conviction. Estun Automation (China: Industrials) was a company we had sold on valuation concerns earlier, and when the share price fell sharply along with the rest of China, we added back into it earlier in the year. The top-down investment thesis of an ageing population needing more automation remains intact but financial risk had elevated to an extent whereby we quickly concluded it wasn’t necessarily the same business as the one we had owned previously. We allocated the funds into Inovance (China: Industrials), which operates in the same sector but with a more diversified product range. The company is looking to shift to a regional sales network to better cross sell products across their existing customer base and we feel we can access the same top-down growth driver of industrial automation but with a higher quality business. The other stock we exited in China was Kingmed Diagnostics (China: Health Care) which was a small remaining position which had already been sold down on regulatory fears.
We also sold Kotak Mahindra Bank (India: Financials). We have seen Kotak, and other banks, finding it harder to attract deposits that will allow it and the others to keep growing loans at a fair clip that warrants the valuations the bank is currently on. It used to be the case that public sector banks were so discredited that no depositor would want to risk their savings at one of these state-owned banks. But this sector has been really cleaned up, which is great for the Indian consumer but makes for a more difficult competitive environment for the private sector banks, including Kotak. With growth looking muted and residual concerns about management, we decided to sell our holding.