Based in Hong Kong, our team is made up of 12 investment professionals. We take a long-term perspective based on an industry focus across the region. We invest in quality companies using an active, bottom-up investment process. Our goal is to identify companies that can outpace market expectations and deliver:
- High and/or improving return on capital
- Strong balance sheets
- Consistent cash-flow generation
Responsible/ethical
We favour companies that adhere to good environmental, social and governance (ESG) practices, believing that these factors are relevant to a company’s risk/return profile and have a bearing on its long-term sustainability.
Opportunistic
We recognize that short-term market shocks can create opportunities to buy companies at a significant discount to what we assess is the fair value of the underlying business.
Long-term perspective
We take a long-term perspective based on industry focus across the region.
High-conviction
Through high-conviction stock selection, we aim to build portfolios that generate differentiated excess returns over time.
Methodical
We rely on a methodical and consistent empirical process designed with a longer-term view.
Our approach to incorporating ESG factors isn’t just one step in our investment process – it’s embedded throughout. To do this, we access and analyze information from a broad array of sources, including external data providers and, more importantly, on-the-ground channel checks. The data gathered from these sources can be both quantitative and qualitative. We believe that incorporating ESG factors will allow for more robust risk assessments on a stock and portfolio level.
ESG is key to our fundamental, active investment management
Quantitative
- Proprietary quant process/tools
- Accounting quality screens
- In-house audit/quant specialists
- 3rd party research (GMT, MSCI ESG, HOLD Risk, Sustainalytics)
- Aggressive accounting
- Sustainability of cash flows
Qualitative
- In-house research notes and robust checklist with explicit commentary on ESG
- 3rd party data specializing in ESG (e.g. past several years of company’s litigations or media coverage)
- Holistic, thorough, consistent process
- Long-term view
Beyond
- Company meetings/calls
- On-the-ground channel checks
- Sector specialist team structure/discussions
- Interviews (e.g. industry experts, regulators, competitors, local investors)
- Industry/company specific ESG perspective
Entire investment process. Each and every investment team member
Source RBC GAM