- AUM $119 million
(30 June 2021)
- Inception Date 1986
- Vehicles Available
- Separate Account
- 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.
ESG in Equities: Identifying Winners in the Energy Transition
Clean energy and anti-pollution initiatives will continue to impact the equity investment landscape—but not all companies will be winners, and careful analysis will be needed to identify those that stand to benefit and those that may see a threat to their business model.View
The False Dawn of Big Tech Regulation?
Calls for increased regulation of tech giants have indeed grown—but will they have the desired impact? In our opinion, the focus on "big is bad" is simply ineffective in a digital world.View
Comeback Time for International Equities?
Because the U.S. equity market is broad and deep, there will almost always be opportunities—but in aggregate, we think international equity markets may be more compelling over the next year.View
Investing in China: Tapping into Long-Term Opportunities
Ghadir Cooper, Global Head of Equities, recently joined a round table with Pensions & Investments to discuss the opportunity set in China. Despite slowed growth and trade concerns, she believes there are several reasons why investors should remain optimistic.View
Enterprise Software: Valuation Matters
While industry dynamics remain healthy and growth prospects exist, current enterprise software valuations look stretched.View