Foreword
Our strategy has always had low levels of turnover, so portfolio activity alone does not provide a full picture of the team's wide-ranging research effort. This research review aims to give you greater insight into how we assess businesses and decide which to add to our emerging market watchlist and strategies.
Some of the research activity discussed here has led to portfolio change; other areas may require further work, which can sometimes lead to a decision not to invest in a particular company or sector. However, it is important that we continuously challenge ourselves to understand and assess new opportunities across all of the regions and sectors making up our investment universe.
Being open-minded helps ensure that the portfolios we manage can meet the challenge of the future and increases the likelihood of them meeting our long-term absolute return aspirations.
What's in this Review?
We start with some thoughts on adding to our watchlist in China, with a discussion around our approach to finding opportunities despite the significant challenges of alignment there.
Our search for companies with strong pricing power led us into the innovative pharmaceutical space and we next discuss how we look for risk-aware ways to gain exposure to rising healthcare expenditure across emerging markets, followed by a specific look at the prospects for growth in the pharmacy sector.
Finally, with all the excitement surrounding the electrification of four-wheeled transport, we discuss our work on the evolving two-wheeler market, given its importance in many developing countries. These countries may lack the infrastructure of developed markets but they have the same desire to decarbonise their transportation industries.
We hope you will find this document interesting and useful. Should you have any follow-up questions or thoughts, please do feel free to get in touch.
