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The information contained within this material has been obtained from sources that First Sentier Group believes to be reliable and accurate at the time of issue but no representation or warranty, expressed or implied, is made as to the fairness, accuracy, completeness or correctness of the information. To the extent permitted by law, neither First Sentier Group, nor any of its associates, nor any director, officer or employee accepts any liability whatsoever for any loss arising directly or indirectly from any use of this. This material is intended solely for distribution to professional/institutional investors as may be defined in the relevant jurisdiction and is not intended for distribution to the public. The information herein is for information purposes only; it does not constitute investment advice and/or recommendation, and should not be used as the basis of any investment decision. Some of the funds mentioned herein are not authorised for offer/sale to the public in certain jurisdiction.
The value of investments and the income from them may go down as well as up and you may not get back your original investment. Past performance is not necessarily a guide to future performance. Please refer to the offering documents for details, including the risk factors.
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First Sentier Investors (Hong Kong) Limited and First Sentier Investors (Singapore) are part of the investment management business of First Sentier Group, which is ultimately owned by Mitsubishi UFJ Financial Group, Inc. (“MUFG”), a global financial group. First Sentier Group includes a number of entities in different jurisdictions.
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© First Sentier Group
Built beyond the benchmark.
Global Emerging Markets
Our solution
Our solution
Portfolio construction
With more than three decades of experience investing in emerging markets, we’ve witnessed some of the biggest growth stories take shape.
While many investors see high trading volumes and rapid portfolio turnover as evidence of constant re-evaluation and attention to detail, at FSSA we favour a patient, long-term approach, only investing in companies where we have high conviction. Our experience has taught us that focusing on quality – and taking an active, bottom-up approach to stock selection – is key to finding the long-term winners.
Source: FSSA as at 30 June 2025
Contact us
Focusing on quality
With shifting dynamics in global markets, and US stocks trading at historical highs, emerging markets appear undervalued in comparison. According to the Buffet indicator, which measures the ratio of stock market capitalisation to gross domestic product (GDP), the US is significantly overvalued at 200%. China on the other hand, is undervalued by this measure at approximately 80% , while Latin America and most Asian countries (with the exception of Taiwan and India), are around 50%.
This presents an attractive opportunity to build exposure to emerging markets, especially for long-term investors who are seeking diversification.
Source: FT, Bloomberg, April 2025
Benefitting from shifting global dynamics
FSSA GEM Focus strategy top 10 holdings
Click on a circle to discover the top holdings
Each one of our investments starts with a blank piece of paper. With an active share of over 81% and no more than 45 carefully chosen holdings, our portfolio is anything but ordinary.
We look for companies with outstanding management teams, competitive advantages, and sustainable growth, regardless of their region or sector.
Every decision is conviction-driven. Every choice prioritises long-term quality over short-term conformity.
It’s focused, deliberate, and built to stand apart.
We are built beyond the benchmark
Our insights
TOP HOLDING COMPANY
TSMC
TAIWAN
11.6%
We believe the key to building conviction in our investment ideas is having face-to-face conversations with the people and companies we invest in.
AI can crunch numbers, but it won’t meet a CEO face to face. Screens can't read the room or delve deeper into intriguing questions, but we can. We believe boots on the ground beats bots every time. We call it human intelligence.
We rely on human intelligence
Discover how we focus on management quality, what we’ve learned from our decades of experience in emerging markets, and why we believe face-to-face beats AI, every time.
During periods of market turbulence, our long-term approach – and our focus on company fundamentals – stands out for its all-weather characteristics. Since inception, we have successfully navigated challenging market conditions to deliver positive returns over each rolling 5-year period – even when the index return is negative.
We hold all-weather characteristics
Delivering positive returns in turbulent market conditions
Our insights
Past performance is not a reliable indicator of future performance.
Source: FSSA Global Emerging Markets Focus composite
Source for composite performance: First Sentier Group as at 31 August 2025. Composite performance is shown on a net of fees basis. Net performance figures are calculated by subtracting a model annual management fee of 0.85% from the gross performance figures. For investors based in countries with currencies other than USD, the return may increase or decrease as a result of currency fluctuations. No other expenses or costs have been taken into account when calculating the net performance. This information is provided for illustrative purposes to demonstrate our activity within the strategy for the periods shown. It is not a recommendation or solicitation to purchase or invest in any fund. Differences between fund or client-specific constraints and those of a similarly managed mandate would affect results. Source for MSCI EM index: FactSet, total returns, gross of tax. Since launch performance calculated from 30/11/2017.
Risk factors
Capital at risk. The value of investments and any income from them may go down as well as up and are note guaranteed. Investors may get back significantly less than the original amount invested.
Read full risk factors
Risk factors
This is a financial promotion for FSSA Global Emerging Markets Strategies. This information is for professional clients only in the UK and EEA and elsewhere where lawful. Investing involves certain risks including:
The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
Currency risk: the Fund invests in assets which are denominated in other currencies; changes in exchange rates will affect the value of the Fund and could create losses. Currency control decisions made by governments could affect the value of the Fund's investments and could cause the Fund to defer or suspend redemptions of its shares.
Emerging market risk: Emerging markets tend to be more sensitive to economic and political conditions than developed markets. Other factors include greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities.
For details of the firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information.
For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.
If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.
Strategy/index performance %
-10
0
10
30
20
40
11/2022
2/2023
5/2023
8/2023
11/2023
2/2024
5/2024
8/2024
11/2024
FSSA GEM Focus: rolling 5-year performance
(month by month, net of fees)
MSCI EM Index: rolling 5-year performance
(month by month)
TOP HOLDING COMPANY
Despegar
ARGENTINA
7.4%
TOP HOLDING COMPANY
Alsea
MEXICO
9.5%
TOP HOLDING COMPANY
Totvs
BRAZIL
2.9%
TOP HOLDING COMPANY
Credicorp
PERU
3.9%
"We start with a blank piece of paper. It’s not important to us what region or sector a company is in. Or how big it is. Or whether it’s included in the benchmark. We’re simply looking for outstanding emerging-market businesses."
POLAND
2.4%
EGYPT
0.4%
TOP HOLDING COMPANY
Capitec
SOUTH AFRICA
2.8%
TOP HOLDING COMPANY
Bank BRI
indonesia
4.4%
SOUTH KOREA
1.3%
Vietnam
1.4%
TOP HOLDING COMPANY
HDFC Bank
INDIA
19.4%
TOP HOLDING COMPANY
Tencent
CHINA
31.5%
Why face-to-face beats AI:
the value of leaving
the desk
The key to success
in emerging markets: investing
in quality
Built beyond the benchmark: Why long-term trends are
more important than macro movements
Waning of US exceptionalism could benefit emerging markets
Unbanked no more: How challenger banks are rewriting the rules in emerging markets
On AI: the Age of Extremes
30th Nov 2017-2022
30th Nov
2018-2023
30th Nov 2019-2024
31 Dec 2024
10.7
8.1
31 Dec 2023
6.3
10.3
31 Dec 2022
-9.0
-19.7
31 Dec 2021
-2.3
-2.2
31 Dec 2020
-12.5
-18.7
12-month rolling
discrete periods to:
FSSA Global Emerging
Markets Focus composite
MSCI EM Index
Risk factors
This is a financial promotion for FSSA Global Emerging Markets Strategies. This information is for professional clients only in the UK and EEA and elsewhere where lawful. Investing involves certain risks including:
The value of investments and any income from them may go down as well as up and are not guaranteed. Investors may get back significantly less than the original amount invested.
Currency risk: the Fund invests in assets which are denominated in other currencies; changes in exchange rates will affect the value of the Fund and could create losses. Currency control decisions made by governments could affect the value of the Fund's investments and could cause the Fund to defer or suspend redemptions of its shares.
Emerging market risk: Emerging markets tend to be more sensitive to economic and political conditions than developed markets. Other factors include greater liquidity risk, restrictions on investment or transfer of assets, failed/delayed settlement and difficulties valuing securities.
For details of the firms issuing this information and any funds referred to, please see Terms and Conditions and Important Information.
For a full description of the terms of investment and the risks please see the Prospectus and Key Investor Information Document for each Fund.
If you are in any doubt as to the suitability of our funds for your investment needs, please seek investment advice.
Keep up to date with our latest research and developments on social media
Important Information This document has been prepared for informational purposes only and is only intended to provide a summary of the subject matter covered. It does not purport to be comprehensive or to give advice. The views expressed are the views of the writer at the time of issue and may change over time. This is not an offer document and does not constitute an offer, invitation or investment recommendation to distribute or purchase securities, shares, units or other interests or to enter into an investment agreement. No person should rely on the content and/or act on the basis of any material contained in this document.
This document is confidential and must not be copied, reproduced, circulated or transmitted, in whole or in part, and in any form or by any means without our prior written consent. The information contained within this document has been obtained from sources that we believe to be reliable and accurate at the time of issue but no representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information. We do not accept any liability whatsoever for any loss arising directly or indirectly from any use of this document.
References to "we" or "us" are references to First Sentier Investors a member of Mitsubishi UFJ Financial Group (MUFG), a global financial group. Certain of our investment teams operate under the trading names FSSA Investment Managers, Stewart Investors, Igneo Infrastructure Partners and RQI Investors, all of which are part of the First Sentier Investors group. MUFG and its subsidiaries do not guarantee the performance of any investment or entity referred to in this document or the repayment of capital. Any investments referred to are not deposits or other liabilities of MUFG or its subsidiaries, and are subject to investment risk including loss of income and capital invested.
If this document relates to an investment strategy which is available for investment via a UK UCITS but not an EU UCITS fund then that strategy will only be available to EU/EEA investors via a segregated mandate account.
In the United Kingdom, issued by First Sentier Investors (UK) Funds Limited which is authorised and regulated in the UK by the Financial Conduct Authority (registration number 143359). Registered office Finsbury Circus House, 15 Finsbury Circus, London, EC2M 7EB number 2294743. In the EEA, issued by First Sentier Investors (Ireland) Limited which is authorised and regulated in Ireland by the Central Bank of Ireland (registered number C182306). Registered office: 70 Sir John Rogerson's Quay, Dublin 2, Ireland number 629188. Outside the UK and the EEA, issued by First Sentier Investors International IM Limited which is authorised and regulated in the UK by the Financial Conduct Authority (registered number 122512). Registered office: 23 St. Andrew Square, Edinburgh, EH2 1BB number SCO79063.
To the extent this material contains any measurements or data related to environmental, social and governance (ESG) factors, these measurements or data are estimates based on information sourced by the relevant investment team from third parties including portfolio companies and such information may ultimately prove to be inaccurate.
To the extent this material contains any ESG related commitments or targets, such commitments or targets are current as at the date of publication and have been formulated by the relevant investment team in accordance with either internally developed proprietary frameworks or are otherwise based on the Institutional Investors Group on Climate Change (IIGCC) Paris Aligned Investment Initiative framework or such other framework, goal or target as the relevant team considers appropriate. The commitments and targets are based on information and representations made to the relevant investment teams by third parties including portfolio companies (which may ultimately prove not be accurate), together with assumptions made by the relevant investment team in relation to future matters such as government policy implementation in ESG and other climate-related areas, enhanced future technology and the actions of portfolio companies (all of which are subject to change over time). As such, achievement of these commitments and targets depend on the ongoing accuracy of such information and representations as well as the realisation of such future matters. Any commitments and targets set out in this material may be subject to change without notice in the event of future review by the relevant team.
© First Sentier Investors Group
Contact us
Our solution
Our approach
Our insights
Portfolio construction
Our
allocation
Strategy/index performance % (USD)
11/2022
2/2023
5/2023
8/2023
11/2023
2/2024
5/2024
8/2024
11/2024
-10
0
10
20
30
40
30th Nov
2017-2022
30th Nov
2018-2023
30th Nov 2019-2024
Delivering positive returns in turbulent market conditions
FSSA GEM Focus:
rolling 5-year performance
(month by month, net of fees)
MSCI EM Index:
rolling 5-year performance
(month by month)
31 Dec 2020
-12.5
-18.7
31 Dec 2021
-2.3
-2.2
31 Dec 2022
-9.0
-19.7
31 Dec 2023
6.3
10.3
31 Dec 2024
10.7
8.1
12-month
rolling discrete periods to:
FSSA Global Emerging
Markets focus composite
MSCI EM Index
Past performance is not a reliable indicator of future performance.
Source: FSSA Global Emerging Markets Composite.
Source for composite performance: First Sentier Investors as at 31 December 2024. Composite performance is shown on a net of fees basis. Net performance figures are calculated by subtracting a model annual management fee of 0.85% from the gross performance figures. For investors based in countries with currencies other than USD, the return may increase or decrease as a result of currency fluctuations. No other expenses or costs have been taken into account when calculating the net performance. This information is provided for illustrative purposes to demonstrate our activity within the strategy for the periods shown. It is not a recommendation or solicitation to purchase or invest in any fund. Differences between fund or client-specific constraints and those of a similarly managed mandate would affect results. Source for MSCI EM index: FactSet, total returns, gross of tax. Since launch performance calculated from 30/11/2017.
During periods of market turbulence, our long-term approach – and our focus on company fundamentals – stands out for its all-weather characteristics. Since inception, we have successfully navigated challenging market conditions to deliver positive returns over each rolling 5-year period – even when the index return is negative.
We hold all-weather characteristics
We believe the key to building conviction in our investment ideas is having face-to-face conversations with the people and companies we invest in.
AI can crunch numbers, but it won’t meet a CEO face to face. Screens can't read the room or delve deeper into intriguing questions, but we can. We believe boots on the ground beats bots every time. We call it human intelligence.
We rely on human intelligence
Discover how we focus on management quality, what we’ve learned from our decades of experience in emerging markets, and why we believe face-to-face beats AI, every time.
Our insights
Focusing on quality: the key
to our approach in global emerging markets
"We start with a blank piece of paper. It’s not important to us what region or sector a company is in. Or how big it is. Or whether it’s included in the benchmark. We’re simply looking for outstanding emerging-market businesses."
Each one of our investments starts with a blank piece of paper. With an active share of over 81% and no more than 45 carefully chosen holdings, our portfolio is anything but ordinary.
We identify the companies with competitive advantages and potential sustainable growth, regardless of their region or sector.
Every decision is conviction-driven. Every choice prioritises long-term quality over short-term conformity.
It’s focused, deliberate, and built to stand apart.
We are built beyond the benchmark
TOP HOLDING COMPANY
TSMC
TAIWAN
11.6%
TOP HOLDING COMPANY
Despegar
ARGENTINA
7.4%
TOP HOLDING COMPANY
Totvs
BRAZIL
2.9%
TOP HOLDING COMPANY
Credicorp
PERU
3.9%
POLAND
2.4%
EGYPT
0.4%
TOP HOLDING COMPANY
Alsea
MEXICO
9.5%
TOP HOLDING COMPANY
Capitec
SOUTH AFRICA
2.8%
TOP HOLDING COMPANY
Bank BRI
indonesia
4.4%
SOUTH KOREA
1.3%
Vietnam
1.4%
TOP HOLDING COMPANY
HDFC Bank
INDIA
19.4%
TOP HOLDING COMPANY
Tencent
CHINA
31.5%
Source: First Sentier Investors, 31 December 2024
FSSA GEM Focus fund’s country weightings in 2024
Click on a circle to discover a country’s percentage weighting in the portfolio and top holding, where applicable
We understand the value emerging markets can offer, irrespective of the current geopolitical mood or macro environment. While the future of US trade policy might look uncertain, not everything in the world revolves around it. The FSSA GEM strategy invests in some of the world’s best companies in fast-growing economies – where the opportunity ahead looks bright.
Our fund is 100% emerging markets so there’s no risk of doubling up on developed-market exposure.
We are a pure GEM manager
Focusing on quality: the key
to our approach in global emerging markets
Focusing on quality: the key
to our approach in global emerging markets
We are a pure GEM manager
Discover more about us
Keep up to date with our latest research and developments
Discover more about us
Keep up to date with our latest research and developments
The global economy is increasingly being driven by emerging markets growth. We expect this trend to accelerate in the coming years. Emerging markets have historically been quite a good diversifier; and there is a broad collection of very diverse countries within the markets.
The case for emerging markets
China: Growing middle class
Taiwan: Forefront of Artificial Intelligence
Mexico: Formalisation of the economy
India: Early stages of financialisation
China
Tencent
Tencent is the largest social media network and online gaming company in China, with growing businesses in online advertising, cloud services and e-payments/e-commerce. As a team, we have owned shares in the company for more than 15 years. It has proven its ability to deliver growth despite the weak economy, and the management is confident that profitability will improve further as it continues to develop its high-margin businesses.
Prosus
Prosus is one of the largest technology investors in the world, with significant exposure to emerging markets. Its main asset value is derived from its stake in Tencent, but it has also built a solid portfolio in food delivery platforms, online classifieds and fintech businesses. Prosus’ businesses enjoy strong durable moats from network effects and, owing to the asset-light nature of the business model, tend to generate significant free cash flow.
Anta
Anta Sports is China’s top sportswear company, known for building multiple strong consumer brands in China. Recent growth has been driven by Anta’s relatively niche brands like Descente and Kolon Sport, which target high-end consumers engaging in fast-growing activities like camping and winter sports. Looking beyond China’s near-term weakness, we still believe that strong brands will outperform others as people choose to upgrade certain goods and services – albeit on a more selective basis than before.
Taiwan
TSMC
TSMC is the world’s largest semiconductor foundry (manufacturer). In recent years, TSMC has been a major beneficiary of AI advancements. We expect revenue and profits to continue to grow due to the “extremely robust” demand from AI, while sectors like robotics are expected to push semiconductor needs even higher. We believe it should continue to provide attractive compounding growth over the long run.
India
ICICI Lombard General Insurance
ICICI Lombard is India’s leading private general insurer. The management has operated with risk-awareness and agility, and has grown the business without excessive risks, in our view. General insurance penetration in India is among the lowest globally, which suggests that the industry has significant long-term growth potential. Additionally, private insurers like ICICI Lombard are gaining share from state-owned enterprises, due to years of underinvestment and mismanagement at the latter.
ICICI Bank
ICICI Bank, a leading Indian private bank, has transformed under CEO Sandeep Bakhshi, shifting from aggressive lending to a risk-focused, customer-centric model. This cultural overhaul has strengthened asset quality and boosted market share. With state-owned banks still dominating 60% of the market, ICICI Bank has significant growth potential while maintaining strong returns.
HDFC Bank
HDFC Bank is the largest private-sector bank in India, with over 10% market share in loans and deposits. The management has a long track record of managing risks prudently, while maintaining industry-leading return-on-assets (ROAs) across economic cycles and periods of disruption. We have owned the bank for many years and have long admired the management team, and the way it has pursued growth in a countercyclical and conservative manner.
Brazil
TOTVS
TOTVS is Brazil’s leading provider of enterprise resource planning (ERP) software. Its core product serves over 40,000 small-to-medium sized companies, which global software companies like SAP and Oracle often can’t and don’t serve well. As is true for our other portfolio holdings, we have met TOTVS many times over the years, and like the combination of family ownership and professional management.
Argentina
MercadoLibre
MercadoLibre is Latin America’s leading e-commerce company and well placed to benefit from favourable structural trends such as the growing middle-class population in the region, the rising adoption of online shopping and greater levels of financialisation. Its track record of innovation and strong execution has led to consistent growth in sales, gross merchandise value and market share over the years and is backed by strong cash flow generation.
Peru
Credicorp
Credicorp is Peru’s leading financial group with 40% deposit share and a strong reputation under the Romero family. With its conservative culture, the bank has maintained a reasonable return on assets, even during several bouts of political and economic volatility. Meanwhile, the bank has led the way with its Yape payments app, achieving high brand awareness with now 15 million users (half the population). We believe low financial penetration in Peru should support Credicorp’s long-term growth.
Netherlands
Prosus
Prosus is one of the largest technology investors in the world, with significant exposure to emerging markets. Its main asset value is derived from its stake in Tencent, but it has also built a solid portfolio in food delivery platforms, online classifieds and fintech businesses. Prosus’ businesses enjoy strong durable moats from network effects and, owing to the asset-light nature of the business model, tend to generate significant free cash flow.
The case for emerging markets
A large proportion of the companies in our portfolio are driven by domestic demand. This can offer significant protection against the uncertainties of tariffs and trade wars. In our experience, the factors that underpin domestic demand – such as low market penetration rates, premiumisation and import substitution – are more predictable than global market forces.
Uncertainties around US trade policy undoubtedly have the potential to disrupt emerging markets in the months and years ahead – but our portfolio of businesses with strong domestic franchises and relatively low exposure to international markets should help us be able to weather the storm.
Limiting exposure to global headwinds
MercadoLibre
MercadoLibre is Latin America’s leading e-commerce company and well placed to benefit from favourable structural trends such as the growing middle-class population in the region, the rising adoption of online shopping and greater levels of financialisation. Its track record of innovation and strong execution has led to consistent growth in sales, gross merchandise value and market share over the years and is backed by strong cash flow generation.
FSSA GEM Focus strategy top 10 holdings
Click on a circle to discover the top holdings