Global Emerging Markets ex-China Equity

A sub-fund of the Federated Hermes Global Emerging Markets Equities strategy investing across emerging markets except for China.

Reasons to invest

Truly active management
A concentrated portfolio with a high active share, invested with a long-term perspective.
Multi-cap
Investing across the market-cap spectrum.
From top to bottom
A top-down framework to identify countries with conditions supportive of growth. And bottom-up analysis to discover quality companies trading at attractive valuations.
Responsible owner
Investing in companies throughout cycles as an active owner and partner, we maintain a regular dialogue and encourage strong environmental, social and governance (ESG) practices.
Quality and safety
Buying quality companies at a discount can provide a margin of safety in a volatile asset class.
Risk mitigation
Emerging markets are volatile, and the team considers macro factors in the asset allocation, thereby avoiding complex parts of the asset class. The team weighs up the outlook for emerging market inflation, competitiveness, and currencies, allowing it to mitigate risks in emerging market investing to the best extent possible.

Quick links

Emerging markets ex-China offers exposure to consumption, resource and technology themes

More than half of the world’s population lives in emerging markets ex-China representing about one fifth of global GDP. Beyond China, most emerging markets benefit from positive demographics, an expanding middle class, developing digital sectors and significant opportunities in infrastructure. 

In addition to the secular drivers of consumption and technology, emerging economies ex-China control huge reserves of key commodities, such as green metals, that are vital for the transition to net zero. While macro challenges remain in a few areas, overall vulnerabilities are limited, and ongoing reforms are likely to strengthen the case for emerging markets ex-China in years to come.

World map infographic

GEMs ex-China aims to mitigate any geopolitical and ESG risks related to China while benefiting from the vast growth potential across emerging markets.

Kunjal Gala
Lead Portfolio Manager, Emerging Markets

Why GEMs ex-China Equity?

Overview

The tabs are working. Please, note, that you have to add a template to the library in order to be able to display it inside the tabs.
The tabs are working. Please, note, that you have to add a template to the library in order to be able to display it inside the tabs.

How we invest

Fundamental approach
Seeking discounts to intrinsic value
ESG integration

Investment philosophy

We believe:

  • Structural changes in the world economy are transforming emerging markets.
  • The winners that emerge from this transformation will be efficient and sustainable businesses.
  • This is a long-term trend requiring a long-term approach.
  • Quality companies trading at attractive valuations, in countries with conditions supportive of growth, provide the best investment opportunities.
  • Investing in lower-quality, significantly mispriced companies can be a catalyst for the realisation of value.
  • The best way to add value for investors is through a process that integrates top-down analysis with bottom-up fundamental stock selection, augmented by ESG analysis and engagement.

Investment process

The tabs are working. Please, note, that you have to add a template to the library in order to be able to display it inside the tabs.

We seek to establish a company’s financial health and long-term prospects. We model financial forecasts (one- and five-year earnings), cash flow and balance sheet. We combine this with the analysis of operational, financial and ESG risk factors to estimate the intrinsic value of the company.

We believe concentrated portfolios are best equipped to maximise risk-adjusted returns. Typically, we hold 40-60 companies in a portfolio, with the top 20 holdings accounting for more than 60% of the portfolio.

Team

5980, 6093, 5943
No data was found
Badge big

Product information

For the latest performance and vital information – including prices, key facts, identifiers and ratings

Learn more
White tree

Insights

Read our latest portfolio perspectives

Learn more