INVESTMENTS
THE SUCCESS STORY IN EMERGING MARKETS HAS ONLY JUST BEGUN
EMERGING MARKETS : SHAPING THE WORLD OF TOMORROW
There ’ s more to emerging market equities than meets the eye . Carmignac ’ s Xavier Hovasse shines a light on an asset class that ’ s still flying under the radar and explains how to make the most of it . 2020 was a banner year for emerging markets . Xavier Hovasse , Head of Emerging Market Equities and Fund Manager at Carmignac , believes it marked the beginning of a period of outperformance that will gather even more pace when “ we can finally turn the page on the pandemic ”.
A high-conviction approach The strategy , also available through a Luxembourg Sicav and a UK open-ended investment company ( Oeic ), follows a concentrated , high-conviction approach that focusses on winners of the digital revolution and beneficiaries of long-term structural growth and demographic trends . Classified as Article 8 , according to the European Sustainable Finance Disclosure Regulation ( SFDR ), the Fund adopts a socially responsible investment ( SRI ) approach and has received two sustainability labels 1 . But that ’ s not all . The managers of Carmignac Emergents , Hovasse and recently appointed Haiyan Li-Labbé , combine several decades of industry experience and benefit from a unique insight into the asset class . As a matter of fact , the duo draws on the expertise of the entire management team , which is essential to invest comprehensively in this universe . The dual coverage of stocks , by a regional specialist and a sector expert , plays an important role and constitutes one of the team ’ s key strengths : “ If , for example , we buy a Chinese healthcare company , both Haiyan , who ’ s the Chinese expert , and Jith Eswarappa , who ’ s the global healthcare expert , are weighing in ,” Hovasse said . “ Similarly , if I ’ m buying an insurance company in India , it ’ s going to be covered by Amol Gogate and Matthew Williams . Haiyan and I have ownership of decision-making on final positions and their sizing , but we work hand in hand with the sector specialists .”
48 | the adviser