Emerging markets equities
Blackfriars Asset Management's emerging markets investment expertise has been in place for over ten years.
We seek to add alpha through both country allocation and stock selection exploiting the inefficiencies that exist across and within emerging markets. Our aim is to capture the return differentials which arise from countries which are at different stages of their economic, development and political cycles.
Investment process
Country allocation
A quantitative factor model, developed and used by the emerging markets team, is at the centre of our country allocation process. The model is rigorous, systematic and ensures a consistent analysis of a broad range of market and economic factors.
Stock selection
The pricing of stocks within emerging markets can be inefficient due to undiscounted changes in a company's operating environment.
Our in-house analysts aim to identify these mis-pricing opportunities through fundamental analysis and reflect their views through buy and sell recommendations.
Portfolio managers utilise these recommendations to generate alpha by investing in the stocks that offer the greatest potential upside.
Regional portfolios are run using the same investment process and inputs although the primary source of alpha in these portfolios is targeted to come from stock selection.
Risk management
Risk in the portfolio is managed at all stages of the process from the initial investment decision through implementation to the ex-post analysis of overall portfolio characteristics. Exposures are monitored to ensure that the portfolio remains within clearly defined country and aggregate tracking error parameters.
Please note that our strategies and funds may not be available to all investor types in all geographies.
Past performance is not a guide to, or indicative of, future results.
Key benefits of our capability
- A team-based approach harnesses expertise of all investment professionals.
- Multi-factor quantitative investment process.
- Additional insight from experienced investment team of analysts and portfolio managers.
- In-house fundamental research supports stock selection process.
- The investment process is continuously reviewed and improved where appropriate.
- A strong culture of risk management throughout the process.
- This approach has delivered top quartile returns since inception.*