Environmental, Social and Governance Report 2022

This report covers our Environmental, Social and Governance (ESG) activities over 2022. Our extensive engagements with portfolio companies form the bulk of our activities and as such, we aimed to illustrate the report with a series of case studies organised within our three focus areas. 

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Why Asia and Emerging Markets?

The fastest growth and some of the highest level of innovation is happening in Asian and Emerging Market economies. 

With this progress comes a burgeoning middle class with a propensity to consume and levels of company formation reminiscent of the US in the early 20th century.

But it’s also a complex market, requiring deep insight, local knowledge and a questioning, sometimes contrarian perspective to ensure opportunities are interrogated with a view to long-term success. 

It’s that different perspective that gives FSSA Investment Managers an edge.

Our high-conviction strategies

Our Greater China strategies cover China, Hong Kong and Taiwan, with single country and regional portfolios. Though China provides the largest opportunity set in the region, Taiwan, with its large technology sector, and Hong Kong, with its more developed governance and regulatory framework, offer a number of interesting investment opportunities. Our China A-Share strategy is invested in domestic market leaders and globally competitive Chinese companies. 

Our range of Asia Pacific strategies cover small, mid and large-cap companies. The portfolios are invested in quality companies that we believe have long-term, sustainable growth drivers and should benefit from Asia’s structural tailwinds. 

Our Indian Subcontinent strategies cover India, Pakistan, Bangladesh and Sri Lanka. We tend to favour dominant consumer franchises, high quality private banks and infrastructure companies. We believe large populations, supportive demographics and underpenetrated markets in this region should provide a favourable long-term growth environment for these types of companies. 

Our Global Emerging Markets strategies cover developing and frontier markets companies and are biased towards mid-cap companies that have the potential to grow much larger over time. We tend to favour dominant franchises operating in industries with long-term structural tailwinds. 

Our Japan strategies are focused on secular growth trends which decouple from the macro-economic environment. These include well-managed Japanese companies that have global brand recognition, domestic leaders that have grown over multiple cycles, and automation companies that have benefitted from structural demand growth. 

Why FSSA Investment Managers?

At FSSA Investment Managers we believe that to consider the future, you need to understand the past. We believe that preserving capital is the most important aspect of growing it. And we believe that looking at things differently is more important than looking at things too closely. With this distinct perspective, we look to invest in good people running good businesses who can deliver sustainable, long term growth. 

1988 team established

Our history reflects our long-term approach; we look for quality companies that we can buy and hold over time.

Absolute return mind-set

Our investment approach focuses on generating absolute returns for our clients. With every investment we make, we look at the potential downside and not just upside.

20+ investment professionals

Our team of specialists conduct fundamental analysis to find quality companies at sensible prices.

ESG fully integrated

Environmental, social and governance as an analysis is fully integrated into our investment process since the team’s establishment.

Our latest thinking

In our last update, we touched on the idea of high-quality companies hiding in small market capitalisations in ASEAN . This, in our view, is due to years of declining foreign-investor interest in the region. These companies are usually not covered in great detail or indeed at all by sell-side research analysts.
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In response to the recent client interest around China’s market and the challenging performance year-to-date, we had a conversation with Martin Lau, managing partner and lead portfolio manager for the FSSA Asian Equity Plus and FSSA China Growth strategies.
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