Among the most important considerations for a growing number of investors who may be considering small- and mid-cap emerging market stocks are those companies’ environmental, social, and governance practices, says Heidi Heikenfeld, CFA, portfolio manager of OppenheimerFunds’ Emerging Markets Innovators strategy. That’s why Heidi and her team evaluate investment opportunities partially through an ESG lens.
According to Heidi, it’s not enough for a company to comply with ESG standards; all the companies in its supply chain also must follow accepted ESG principles. She says she won’t invest in companies that exploit people or whose profits are bolstered by cheaper labor costs than its competitors.
In the accompanying videos, Heidi discusses the importance of ESG and how it factors into her investment process in more as well as her approach to risk management.
For additional insights, please visit our Perspectives on Emerging Markets collection.
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Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes, regulatory and geopolitical risks. Emerging and developing market investments may be especially volatile. These risks are magnified in frontier markets. Investing significantly in a particular region, industry, sector or issuer may increase volatility and risk. Small and mid-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a small-sized or mid-sized company, if any gain is realized at all. Investments in securities of growth companies may be volatile.
These views represent the opinions of the Portfolio Manager and are not intended as investment advice or to predict or depict the performance of any investment. These views are as of the publication date, and are subject to change based on subsequent developments.