UK Lgps Sustainable Global Emerging Markets

Strategy highlights

  • Three overarching themes aligned with UN Sustainable Development Goals – Earth, Health and Wealth
  • Long-term thematic research targets areas with strong growth potential, not ‘old’ profit pools
  • Focus on ‘compounders’ – exceptional, leading businesses with long-term growth potential
  • Fundamental bottom-up research
  • Investing in companies that positively manage the material impacts of their operations and products on the environment and society
  • Actively omitting companies involved in areas of high social cost, environmental degradation or violation of the UN Global Compact Principles
Learn more about our multidimensional investment philosophy

Strategy profile

Objective

To achieve long-term capital growth over the long term (5 years or more).

Performance benchmark

MSCI Emerging Markets Index (NDR)

Typical number of equity holdings

Typically 45-65 holdings

Red lines

Our ‘red lines’ are built on a combination of exclusions that effectively avoid investments in security issuers involved in or that generate a material proportion of revenues from areas of activity that we deem to be harmful from a social and/or environmental perspective.

Strategy inception

December 2021

Strategy available through pooled UK vehicle

BNY Mellon Sustainable Global Emerging Markets Fund
RI report Sustainable Global Emerging Markets

Responsible investment report

Stewardship activities (voting and engagement) for the last quarter and ESG metrics.

Download Report

Investment team

Our Sustainable Global Emerging Markets strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Contact us

Liliana Castillo Dearth
Liliana Castillo Dearth

Head of emerging markets and Asia equities

Julianne McHugh
Julianne McHugh

Head of sustainable equities

Alex Khosla
Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team

Zoe Kan
Zoe Kan

Portfolio manager, emerging markets and Asia equities team

Nick Pope
Nick Pope

Portfolio manager, Sustainable Equity strategies

Fei Chen
Fei Chen

Investment analyst

Aditya Shah
Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities team

Insights

Accessories, Bag, Text
Blog

China trip: Three takeaways

Three findings from a recent research trip to China.
19 March 2024 Liliana Castillo Dearth
Blog

China and the West: A tale of two inflations

We analyse how China’s economy is influencing inflation rates across the developed and emerging world.
06 March 2024 Newton fixed income team
Architecture, Building, Cityscape
Blog

Macro-geopolitical 2024 outlook: Pivotal election year ahead

With several key trends set to reach an important climax in 2024, we consider the investment implications.
25 January 2024 Newton fixed income team

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Newton will make investment decisions that are not based solely on ESG criteria. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that ESG and sustainability criteria are assessed and the evaluation of their suitability for Newton’s sustainable strategies may vary depending on the asset class and strategy involved. For Newton’s sustainable strategies, ESG analysis is performed prior to investment for corporate investments (single name equity and fixed-income securities). The analysis will then also follow the Newton sustainable investment process to ensure it fits with the wider Newton sustainable investment philosophy.

Key investment risks

  • Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
  • Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.
  • Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Strategy can lose significantly more than the amount it has invested in derivatives.
  • Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
  • Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) risk: The strategy may invest in China A shares through Stock Connect programmes. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.
  • Sustainable strategies risk: The strategy follows a sustainable investment approach, which may cause it to perform differently from strategies that have a similar objective but which do not integrate sustainable investment criteria when selecting securities.