Somerset Capital Management
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Investment Approach

An Introduction to Sustainability Risk in Emerging Markets

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:

 

  1. At the company research level
  2. At the portfolio construction level
  3. During engagement with companies including proxy voting

 

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.

 

For more information on our Sustainability Investment Policy, please get in touch.

 

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“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.”

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