Equities investment process
Ashmore’s equity themes all share common underpinning principles. We believe that Emerging and Frontier markets are highly inefficient and provide strong potential for significant alpha generation through actively managed, high conviction and investment focused approaches.
Our investment universes are unconstrained by indices since relying on indices can be inherently restrictive. Furthermore, we believe that strong portfolio performance can only be sustained by ensuring portfolios have the ability to be managed actively. Consequently, liquidity assessment, and a conservative approach to capacity management, are integral to both portfolio performance and risk management.
Our Equity themes generate alpha from multiple sources. Emerging and Frontier Markets represent a diverse and broad range of economies and markets each at a different stage of development and facing diverse structural challenges. Significant and sustained portfolio returns can therefore be generated by a combination of both fundamental ‘top down’ and ‘bottom up’ decision making. Environmental, Social and Governance factors are explicitly assessed, scored and integrated into our investment process to help enhance our ability to deliver superior risk adjusted returns.
Our themes are all driven by investment committees that are team based with individual accountability. Structured oversight is carried out by the Equity Investment Committee. The additional insight and expertise of Ashmore’s Fixed Income and Alternatives teams is leveraged, together with Ashmore’s global operations and infrastructure platform.