EMSF Profile
Matthews International Funds offers the Matthews Emerging Markets Sustainable Growth Fund (EMSF), which is strategically designed to invest in common and preferred stocks of companies across emerging markets, including those classified as frontier markets. The fund takes an all-cap approach, meaning it invests across various market capitalizations but has a particular focus on smaller, high-growth companies. This emphasis on smaller firms aligns with the fund’s objective of identifying and investing in companies with significant growth potential.
The EMSF seeks to achieve sustainable growth by evaluating fundamental factors such as balance sheet strength, company size, cash flow stability, and overall financial health. In addition to these financial metrics, the fund integrates a comprehensive approach to environmental, social, and governance (ESG) criteria. By leveraging third-party data alongside proprietary research, the fund aims to select investments that contribute positively to global sustainability goals, addressing pressing environmental and social challenges.
The fund applies stringent ESG standards to its investment process, employing exclusionary screens to avoid businesses involved in controversial sectors such as tobacco, weapons, and fossil fuels. This commitment reflects the fund’s dedication to promoting responsible investment practices and supporting companies that align with its sustainability objectives. The EMSF also actively engages with its portfolio companies on ESG issues, including sustainability and governance, through direct dialogue, shareholder advocacy, and encouraging improved ESG transparency.
Overall, Matthews International Funds' EMSF provides investors with a focused approach to emerging markets, emphasizing growth opportunities in smaller companies while adhering to rigorous ESG standards. The fund’s strategy combines fundamental financial analysis with a strong commitment to sustainable investing, making it a distinctive option for investors interested in both growth potential and responsible investment practices in emerging and frontier markets.
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