160. Why India has a larger pool of quality companies than other emerging markets

Rasmus Nemmoe, manager of the FSSA Global Emerging Markets Focus fund, talks to us about the outlook for emerging markets and the factors in play today that could mean they perform better in the next decade than the last. He explains why the pool of great businesses in India is a lot bigger than in most other markets and tells us about United Breweries, the Indian Heineken subsidiary, which has been the best performing stock in the portfolio so far this year.
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FSSA Global Emerging Markets Focus fund invests in 40-45 large and medium-sized companies in emerging markets. Manager Rasmus Nemmoe has an absolute return mindset, and each holding is a quality company that can show sustained and predictable growth over the long term. The fund has a strong environmental, social and governance ethos without labelling itself as such and, while a relatively new launch, has already shown a lot of potential.

What’s covered in this podcast:

  • Why investors should consider emerging markets today [0:18]
  • How the fund has been able to outperform since launch [3:24]
  • How the manager chooses just 40-45 companies from a universe of 36,000 [5:57]
  • Why the fund has a bias towards financial companies at the moment [7:46]
  • Why the manager likes Indian companies and firms in Mexico [10:46]
  • If Chinese regulation is a risk or an opportunity [12:17]
  • Which is the best performing stock in the portfolio this year [14:16]
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