We know from many years of investing in Emerging Markets that uncovering the true characteristics of a business, and assessing how minority shareholders will be treated, requires a long term perspective and looking beyond traditional financial data points. Assessing governance risk and interacting with management teams to protect the value of our investment has been a cornerstone of our investment process since the firm was founded.
As markets, governments and culture have evolved, Somerset Capital Management has continued to proactively develop, deepen and formalise our investment processes to engage with environmental and societal issues at large.
In summary sustainability analysis is integrated into our investment process at three distinct stages:
Our approach has been developed in-house, is carried out by the investment team and has been designed to concentrate on assessing material threats to core business profitability and minority shareholder returns.
Please see our 2019 Stewardship Code Disclosure Statement here. We are assessing our alignment with the new Stewardship Code and intend to apply as a signatory in April 2022.
For more information on our Sustainability Investment Policy, which sets out our compliance with the Sustainable Finance Disclosure Regulation, please get in touch.
This image is courtesy of Pullman Editions
“Assessing governance risk and interacting with management teams to protect the value of our investment has been a cornerstone of our investment process since the firm was founded.”