Investment Process

The process of finding stocks for the portfolios is straightforward. Once we have narrowed down the universe through a market cap filter:

Global Emerging Markets Dividend Growth	$800m +
Global Emerging Markets Large Cap	$1bn +
Global Emerging Markets Small Cap	$100m - $2.5bn

We start with daily screens; we may be looking for high dividend paying firms, or low PEs or PBs, depending on the outlook or strategy. This gets us down to a workable but ever evolving pool of about 300-350 stocks which will be visited, analysed and scrutinised by our team of managers and analysts. This pool then feeds into our 100 stock watch list from which we form our 40 stock portfolios.

Risk Controls

We believe that the key to investing in emerging markets is to avoid the substantial country and stock risks that are represented in this asset class.

As a result we limit stock investment to 5% of the fund NAV and country and sector exposure to a maximum of 20% of the fund's overall total.

Decision Making

The final decisions are made by the lead managers. Mark Asquith is the lead manager on our Small Cap Fund whilst Edward Lam heads our Dividend Growth Product. Finally, Edward Robertson and Jacob Rees-Mogg are the lead managers on our Large Cap Product.

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The diagram below shows our process at work.