Access a proven strategy that invests in high-quality, growth companies unique to emerging markets with a strong focus on ESG and downside protection. Managed by equity specialist Northcape Capital, one of Warakirri’s boutique asset managers.
Northcape is one of Warakirri’s boutique asset managers with a long history of managing equities for Australian institutional investors. Investors can now access Northcape’s expertise exclusively via the Warakirri Global Emerging Markets Fund.
Northcape invests in resilient businesses with clear opportunities for growth and has delivered sustained investment outperformance over the long term1.
ESG leading companies have historically outperformed, especially in emerging markets2. Northcape sets the bar high for companies to pass its ESG screen before being considered for addition to the portfolio.
A Unique Approach to Investing in EM
Watch this brief video with Ross Cameron, Portfolio Manager / Analyst at Northcape Capital to learn about their high conviction investment approach, the team’s preferred EM economies and what’s driving performance in emerging markets equities.
This video has been prepared by Northcape Capital and is intended for wholesale investors.
Northcape Capital (ABN 53 106 390 247) (AFSL 281767) is the underlying investment manager for the Fund. While the information included in this video has been prepared with all reasonable care, Northcape Capital and Warakirri Asset Management accepts no responsibility or liability for any errors, omissions or misstatements however caused. The views and opinion of Northcape Capital is provided for informational purposes only and are believed to be accurate at the time of recording. The economic and market forecasts are for informational purposes as at the date of this video. There can be no assurance that these forecasts will be achieved.
Northcape’s highly disciplined, index unaware, “Best of the Best” ideas strategy has yielded strong, resilient returns. In fact, their investment approach has experienced only one calendar year of underperformance since the strategy’s inception in 2008.
Managing downside risk is critical for successful investing in Emerging Markets. Northcape’s strong risk management approach which starts with the critically important identification of sovereign risk and their quest for ESG excellence – only investing in companies that adhere to sound environmental, social and corporate governance practice – ensures a focus on the protection of investor’s capital.
1. Source: Northcape Capital: Past performance of the Northcape Capital Global Emerging Markets Strategy is not representative of the performance of the Warakirri Global Emerging Markets Fund. Read More.
Zenith Investment Partners initiated coverage of the Warakirri Global Emerging Markets Fund giving it a “Recommended” rating, citing a “well-managed (fund) by an experienced investment team adopting a differentiated investment approach” as one of the reasons for the rating.
“Historically, Northcape’s investment approach has resulted in solid participation in rising markets whilst offering strong downside protection. Zenith considers the Fund’s performance profile to be a key attraction,” the ratings agency said.
Lonsec Research has rated the Warakirri Global Emerging Markets Fund as “Investment Grade”. Lonsec highlights a strength of the fund as the “highly detailed research approach which places a high degree of emphasis on downside protection with notable integration of ESG considerations.”
“The process incorporates a sovereign risk framework into decision making which have historically been important drivers of emerging markets risk.” the ratings agency said.
Globally ESG leading companies have historically outperformed – even more so in emerging markets2. ESG is a critical component of building sustainable, long-term performance in emerging markets.
Northcape undertakes a comprehensive ESG assessment of all prospective investments as the first step in the investment process. Read more about Northcape’s approach to ESG below.
In Emerging Markets – country selection is key.
Northcape employs a detailed sovereign risk assessment to determine a country’s risk factor that underpins its stock valuation and selection process. Read more about Northcape’s approach to country selection below.
In 2021, Northcape began to monitor the carbon intensity of its portfolios against the benchmark. This provides the ability to identify large contributors to portfolio emissions and prioritise company engagement accordingly. Read more about Northcape’s carbon metrics below.
The Warakirri Global Emerging Markets Fund is issued by Warakirri Asset Management Limited (ABN 33 057 529 370) (Australian Financial Services Licence Holder No. 246782). This website is maintained by Warakirri Asset Management and provides general product information only and does not constitute financial advice as it does not take into account an individual’s objectives, personal situation or needs and is not an offer or solicitation to enter into an agreement. Investors should not rely on the information on this website and should refer to the Fund’s Product Disclosure Statement (PDS) and Additional Information Booklet and seek independent advice from their financial adviser. A PDS for the Fund is available on this website or by calling 1300 927 254. The PDS should be considered before making an investment decision. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Portfolio holdings are subject to change. Investment decisions should not be made upon the basis of the Fund’s past performance or distribution rate, since each of these can vary.
Fund Ratings Important Information
The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating (assigned WRA4779AU October 2021) referred to in this piece is limited to “General Advice” (s766B Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual, including target markets of financial products, where applicable, and is subject to change at any time without prior notice. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Past performance is not an indication of future performance. Zenith usually charges the product issuer, fund manager or related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessments and at Fund Research Regulatory Guidelines.
The rating issued May 2022 is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421 445 (Lonsec). Ratings are general advice only, and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and Lonsec assumes no obligation to update. Lonsec uses objective criteria and receives a fee from the Fund Manager. Visit lonsec.com.au for ratings information and to access the full report. © 2022 Lonsec. All rights reserved.