Finding quality growth opportunities with reduced volatility risks
WHY A GLOBAL EMERGING MARKET EQUITY STRATEGY?
Emerging markets offer exciting growth opportunities for investors. These developing markets can be inefficient – and this creates opportunities for active fund managers to add value.
Many emerging market equities offer structural growth advantages, but share prices across these regions can be volatile. Focusing on high-quality resilient companies brings an opportunity to capture this growth upside while mitigating volatility, resulting in attractive risk-adjusted return potential.
At BNP Paribas Asset Management we seek to invest in quality companies at compelling prices over a long term investment horizon.
We naturally look to companies with sound ESG profiles. We think this enhances both risk control and investment opportunity.
We believe that bottom-up stock selection, where managers assess the value of individual businesses, has the potential to add value for investors.
Our investment process for emerging market equities has four key stages:
- Idea generation and screening
- Fundamental research and valuation
- Stock selection and discussion
- Portfolio construction and risk management
At each stage we draw on the experience and expertise of our regional investment centers to identify potential investments.
These investments fall into three broad categories:
- Growth compounders: companies with structural drivers that enable them to generate and sustain a high rate of return on invested capital
- Mispriced growth opportunities: businesses experiencing temporary setbacks that have been overlooked by the market
- Disruptive growth opportunities: smaller companies with new products, technologies or processes that could reshape existing industries
The global emerging markets team is based in Boston and connects to 13 regional investment centres across Asia, Latin America, Africa and the Middle East, ensuring on-the-ground access and insight into these diverse regions.
The nine-strong team includes portfolio managers, research analysts and investment specialists. It is headed by Quang Nguyen, who is supported by three senior analysts, Whitney Jiranek, David Brenninkmeyer and Rina Jha. All have 15 plus years’ investment experience.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved. Past performance or achievement is not indicative of current or future performance. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks.