Specialists in India, one of the world's fastest-growing markets
Driven by fundamental company research, FSSA Investment Managers delve deep into the Indian market to invest in high quality equities that can outperform over the long term. We are bottom-up investors and construct high-conviction portfolios that offer our clients exposure to some of the world’s fastest-growing markets.
We are long-term, responsible investors and have fully integrated environmental, social and governance factors into the investment process. To us, sustainability is not just a label, but a set of values by which we operate. We consider it to be prudent risk management and a fundamental obligation to our clients.
FSSA Investment Managers is an autonomous team within the First Sentier Investors group, with dedicated investment professionals in Hong Kong, Singapore and Edinburgh.
FSSA’s Indian Subcontinent equity portfolios are built company by company and from the bottom up, with little regard for index positioning. We are focused on growth in an absolute return sense and construct portfolios of high quality companies with effective management teams, long-term, sustainable growth drivers and strong financials. With low penetration rates for goods and services, and barriers to entry which protect profits and cash flow, the leading companies in the region have a good track record of compounding earnings and creating long-term value for stakeholders
The key investment themes for our Indian Subcontinent strategies
Dominant consumer franchises
With favourable demographics and populations that are still growing, we believe dominant consumer franchises can offer good growth potential over the long term.
High quality financials
Well-managed private banks should continue to benefit from greater financial inclusion across India; and they have been gaining market share from the state-owned banks.
We believe that the number of people wanting to live, work and shop in a more urban setting will only increase. Recent changes in regulations should lead to greater market share for high quality property developers.
Consolidation in fragmented markets
High quality and reputable companies should continue to gain market share in fragmented industries, as small and unorganised players (“mom and pop” businesses) are consolidated.
A leading FMCG company
A leading Indian FMCG (fast-moving consumer goods) company, based in India and operating in global emerging markets is 63% owned by the Godrej family, one of the oldest business houses in India, with a strong reputation for ethical business practices.
FSSA Investment Managers has been a shareholder for many years and has met with its management on numerous occasions. Chairperson Nisa Godrej is the sustainability champion, and she is driving diversity and inclusion efforts. There is an executive Corporate Social Responsibility committee, which reports to the board, and a green sub-committee.
Projects such as plastic reduction are coordinated across the business, from design to procurement, and all through the supply chain. The company has published its sustainable packaging targets and to help it achieve these goals, we introduced them to a UK-based biodegradable plastics company, to discuss possible alternatives to plastic packaging.
The companies have since identified a shortlist of solutions and are also working collaboratively to help develop and improve India's biodegradable ISO standards.
Disclaimer: Reference to specific securities (if any) is included for the purpose of illustration only and should not be construed as a recommendation to buy or sell the same. All securities mentioned herein may or may not form part of the holdings of First Sentier Investors’ portfolios at a certain point in time, and the holdings may change over time.
The FSSA investment team consists of more than 20 investment professionals based in Hong Kong, Singapore and Edinburgh.
We have a distinct culture and team structure, which has contributed to the stability of the team. Around half of our analysts joined as graduates; and the majority of our portfolio managers have been with us for most of their careers.
Our team members come from diverse backgrounds and speak 15 local languages and dialects, which contributes to the quality of research and analysis when meeting with companies. All portfolio managers are, first and foremost, also analysts; and the entire team contribute stock ideas to each of our client portfolios.