- AUM $1.3 billion
(30 September 2021)
- Inception Date 2009
- Vehicles Available
- Mutual Fund
- 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 Smaller Companies: An Overlooked Opportunity?
When it comes to ESG, smaller companies have their own unique challenges—which can also provide opportunities for active managers to identify unrecognized growth and undervalued companies.View
Three Reasons to Consider a Long-Term Allocation to Small-Caps
The volatility driven by COVID-19 and the fall in oil prices has created much uncertainty—but it has also provided a potential opportunity to make long-term investments at attractive prices.View
An Active Approach to International Smaller Companies
Barings’ Nick Williams discusses the characteristics of the International Smaller Companies asset class, and explains why an active approach to investing in the sector best positions investors to generate attractive returns.View