Facts still matter: No substitute to research in still-fragmented EMs

Companies' key metrics still matter

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Charlie Carnegie of Arisaig Partners
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Charlie Carnegie of Arisaig Partners

Corporate governance blow-ups were a major feature of the emerging market universe when we began investing in the late 1990s – as impotent institutions, weak regulation and a general lack of awareness combined to form a minefield for investors.

As we sought to unearth the dominant consumer businesses of the future, it was clear an intense focus on ESG was a necessity to identify and avoid weaker corporates in the developing world - as well as reducing volatility in this highly turbulent area.  However, it is still often a challenge to obtain sufficient levels of quality information on companies, even for investors with decades of experience in this space. Perhaps the biggest lesson of investing in emerging markets over this period has been the need for independent in-depth research. Disciplined screening and in-depth rese...

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