Global Emerging
Markets
Equity
Investing in long-term winners as emerging markets transform.
Reasons to invest
We use a long-term approach to identify the winners from structural changes in emerging economies: high-quality, efficient and sustainable companies.
Why Global Emerging Markets Equity?
Three Chamberlain Square
Built in 1974, Birmingham’s old central library was a post-war brutalist monument, characterised by subways and a ring-road that separated the east from the west of the city. By the 2000s, the surrounding site had become a magnet for graffiti and a hub for rough sleepers. Its position in the very centre of the city made it a physical and metaphorical block to Birmingham’s ambition to become a more sustainable and pedestrianised urban centre.
In 2015, Federated Hermes acquired the site and initiated plans to redevelop its 17 acres into a new economic focal point for the city. Over the subsequent eight years, the imposing concrete structures and the congested ring-road was replaced with open, pedestrianised spaces and some of the most sustainable buildings in the UK.
At almost 2 million square feet, Paradise, when complete, will comprise ten new flagship buildings, offering offices, shops, bars, cafés, restaurants, a high-quality hotel and a 49-storey residential tower in the heart of the city.
The high-quality office spaces have attracted several leading multi-national companies to the city, while spaces are also reserved for use by the local community. Our priority for the future is to ensure that everyone – investors, occupiers and local people – has a meaningful stake in Paradise.
How we invest
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
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 50-75 companies in a portfolio, with the top 20 holdings accounting for more than 40% of the portfolio.
Team
Product information
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