Global Emerging Markets
- AUM $770 million
(30 September 2020)
- Inception Date 1992
- Vehicles Available
- Separate Account
- Mutual Fund
- Our investment philosophy reflects our understanding that equity markets are both inefficient and risky.
- We believe that inefficiencies are greatest at the stock level and that over the long term, stock selection by active fund managers can add value in all equity asset classes.
- Attractive risk-adjusted returns can be achieved through a disciplined, bottom-up, stock selection process and a differentiated, risk-aware, portfolio construction process.
- Barings’ equity investment style is Growth at a Reasonable Price (GARP). We seek to identify companies which we believe are mispriced on a longer term basis, based on our understanding of management strategy and the potential for the company to improve returns and grow earnings.
- We value companies on a long term-term basis, utilizing proprietary valuation models that incorporate ESG analysis and macro considerations.
Our Value Add
- Our Depth of Resources: We have a diversified global team of 50+ investment professionals, producing proprietary and differentiated company research, which drives our stock selection.
- Our Focus on a Five-Year Research Horizon: Our research horizon is five years. We believe the market inefficiency is more pronounced over this time horizon, allowing us to readily identify companies with unrecognized growth potential.
- Barings Cost of Equity: We capture and quantify both systematic and idiosyncratic risk via Barings’ proprietary Cost of Equity (COE). We incorporate these economic- and stock-specific potential risks into our valuation of equities and setting of price targets.
- Unique and Quantifiable Integration of ESG: We strongly believe that ESG analysis helps to identify risks that are not typically captured through traditional financial analysis. As a result, we have fully embedded ESG into our investment process, and by doing so, ESG has an influence on both our qualitative assessment and final Barings Cost of Equity of a company.
- Our Proprietary Portfolio Construction Tools: We believe the key to delivering high risk-adjusted returns is through company stock selection and robust risk management. We achieve this through the use of our proprietary, in-house portfolio construction tools.
Is Short-Termism Masking a Long-Term Opportunity in EM Equities?
Emerging markets are in the headlines on a regular basis, but we rarely hear the whole story. In this article, which also appears in September’s edition of IPE, Ghadir Cooper explains more.View
Global Emerging Markets Equities: Where Do We Stand?
In this Q&A, William Palmer and Michael Levy, Co-Heads for Emerging and Frontier Equities, discuss their approach to accessing the asset class, current trends, and why recent headwinds may be becoming tailwinds.View
Why Russia May be Set for an Explosion in E-commerce Growth
Historically a laggard in the e-commerce world, Russia is showing signs of life. But challenges remain.View
How to Approach a More Accessible Chinese Equity Market
Barings’ William Fong and Andrew Lee explore the different ways to access China’s onshore and offshore equity markets following the decision by MSCI to increase the weighting of China A-shares in their benchmarks.View
Why Recent Weakness in EM Equities Presents an Opportunity
In this commentary, which appears in September’s edition of IPE, William Palmer and Michael Levy explain why they believe the factors that have contributed to the weak share price performance are temporary in nature, and growth prospects for the asset class remain attractive.View