Our Philosophy

« Sustainable investors with strong convictions »

ESG expertise (Environment, Social, Governance)

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.

taj

Management team has always been convinced of the positive impact of extra-financial research:

Aim at the best Governance possible
Integration of Environmental and Social risks

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:

Carbon footprint C/V
Female participation in Boards of Directors

To further our in-house approach, we use independent research and data providers Sustainalytics and S&P Trucost.

Above all, we are stock pickers (2/3 of our added value).

Governance: Knowledge of corporate management teams, and their attitude towards minority shareholders
Understanding of the company business model and its growth strategy
Fundamental analysis of their financials (balance sheet strengths, capital structure, asset quality)

Looking for emerging gems offering quality and sustainable growth

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).

Stock-pickers solely focused on EM companies

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:

Alpine in Montréal
Gavekal Dragonomics in Hong Kong

Our unique work organization

We multiply interaction with our investee companies. Our investment team has no bias. Our approach is collaborative. Investment cases are discussed and challenged by the whole team. Investment decision-making is rapid and flexible.

What makes us different?

Our level of commitment

Our entrepreneurial spirit is strong. Fund managers as well as founders are personally invested in our investment funds. Employees of the firm are shareholders.

Our exclusive focus, long experience and flexible size

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.

Our proactive sales & marketing

Monthly reporting is sent within one day after month end. We also send ad-hoc comments, company reports, travel diary and tycoon portraits.

Our sales teams are fully available. Same for our fund managers.

*Signature of the UN Principles for Responsible Investment (UN PRI)
**Carbon Disclosure Project