Different parts of this environment, social and governance analysis are relevant for different companies and different industries. The environment, for instance, is of special concern for mining and energy companies. Social concerns, such as sourcing goods from countries with suspect labour laws, have the potential to damage retailer reputations. Good governance tends to be good all round. Catechis says: “A big chunk of the investment process is avoiding accidents, so when we do our due diligence we always look to see what can de-rail it… We’re not hardedged activists.” The firm subscribes to a political research service and also assesses how a country treats its foreign investors. But Catechis says that political dynamics are not unique to emerging markets: “every country has a series of power brokers; how they interact determines how the country is managed”.

An amateur historian who speaks eight languages, Catechis says that he likes to study the last 100-or-so years of a country’s history before he invests in its market. “I like to look at cultural trends mixed with history… There are some common themes. There is a resurgent nationalism in many countries and we’re seeing a growth in domestic brands as their middle classes expand.” One of the team’s success stories at their previous shop makes an interesting case study. After about nine months of research in 2003 they bought 5 per cent of African Bank, a financier which specialised in loans for low-income earners in South Africa. The bank rode the big rise in the number of middle-class Africans over the subsequent few years while also demonstrating great discipline in its lending practices. It would make sure, for instance, that its interest payments stood first in line when a customer was paid each week or month. African Bank’s market capitalisation has risen from US$600 million in 2003 to about US$2 billion today. The main emerging markets strategy covers large-, mid- and small-cap stocks. The firm also has a Latin American fund and a separately managed China joint venture based in Shanghai that has been managing China A-share capabilities since 1998.