Our fundamental investment research focuses on identifying quality businesses with sound balance sheets, strong management, above average growth prospects and high returns on equity. Our expertise lies in our ability to look through the noise of short-term market movements and invest in businesses that have a meaningful competitive advantage.
Our unique multiple portfolio manager approach allows our portfolio managers the freedom to use their experience and judgement to make investment decisions individually rather than by consensus. Under this approach our portfolio managers focus on their best investment ideas to generate performance. This creates accountability, an environment that optimises knowledge sharing and provides our clients with access to the experience and knowledge of all our investment team.
Protecting capital is an important element of our investment approach. We have a strong and practical approach to risk that focuses on avoiding companies that are structurally challenged, highly geared or have poor governance standards.
Investment Approach
Northcape’s investment approach relies on high quality fundamental investment research, good judgement, constructive debate and the experience of our investment team.
Our focus is on constructing a portfolio of carefully selected, high-quality businesses that delivers resilient and sustained long-term performance for clients.
Responsible Investment
Northcape Capital is a signatory to the United Nations-supported Principles for Responsible Investment.
Northcape has always integrated ESG analysis into its investment processes. The consideration of environmental, social and governance (ESG) factors is a core component of our research process and fundamental to the risk assessment of any investment. Northcape firmly believes that ESG factors have the potential to impact the risk return profile of a company and are key elements of long-term value. We believe that companies with strong ESG standards can better meet society’s long-term expectations by contributing to the sustainable development of the environment in which they operate. Companies focused on these issues are more resilient and are more likely to improve long term returns for all stakeholders. As owners and active stewards of our clients’ capital we believe we can make a positive impact on those companies in which we invest, and we can create a better outcome for all stakeholders.
For more information on how we incorporate ESG considerations into our investment process please refer to our Responsible Investment policy. A summary of our progress on the ESG issues that matter most to our clients, including proxy voting and engagement activities, is provided in our annual Investment Stewardship Report.
