« Sustainable investors with strong convictions »
Our equity funds GemEquity, GemAsia and GemChina are ISR-labelled. GemFund SICAV (including GemBond) is SFDR Article 8 compliant. ESG criteria have been included in our investment approach since Gemway Assets inception as a prime tool for risk reduction. More recently our ESG approach evolved into a full-fledge approach including engagement.
Since 2015, our approach has further developed. We became signatory of UN-PRI* and CDP**. We also measure our funds carbon footprint. Since 2021, we have been committed to outperform benchmark indices on two ESG indicators:
To further our in-house approach, we use independent research and data providers Sustainalytics and S&P Trucost.
Our philosophy is based on a conviction-based approach that favors the best managed emerging companies.
Our objective? To select companies able of generating sustainable and growing Free Cash Flows. This is the only way for us to create long term value for our clients.
The objective of this investment approach is to build a concentrated portfolio of around 30 to 80 stocks with no index constraints (active share > 60%*).
This long-term approach favors growth sectors such as consumption, technology, healthcare, or internet. As a result, our funds are structurally underweight in cyclicals (maximum 1/3 of fund investments).
*Active share: sum of overweighted positions vs. index (stock by stock).
The level of knowledge we require is only possible through regular meetings. We travel to EM countries each month: to meet companies and visit their facilities and to get local flavors from the ground.
On the Macro front, we work with two independent research organizations recognized for their expertise:
Our entrepreneurial spirit is strong. Fund managers as well as founders are personally invested in our investment funds. Employees of the firm are shareholders.
Gemway is solely focused on EM assets. Lead Fund Manager has more than 30 years of experience and our funds remain flexible. Our funds are likely to be soft closed over €5bn.
Monthly reporting is sent within one day after month end. We also send ad-hoc comments, company reports, travel diary and tycoon portraits.
*Signature of the UN Principles for Responsible Investment (UN PRI)
**Carbon Disclosure Project