FMXUF - Aikya Q2 2021 Investor Letter

• Aikya Investment Management is an independent, employee-owned, investment management company that specialises in managing Emerging Markets equity portfolios.
• As investors in Emerging Market countries, crony capitalism and state influence are not foreign to us, but what makes China unique is the way state or crony influence subtly blends into the private sector.
• We believe that a more nuanced approach is needed. The team at Aikya has spent the last 20 years researching China and have collectively analysed close to 1,000 Chinese companies.
• Our purpose is to generate healthy long-term returns with strong downside protection. Years of experience investing in Emerging Markets have taught us that ensuring ‘return of capital’ is almost as important as pursuing ‘return on capital’.
• As a result, our investment approach has evolved to mitigate the risks which couldresult in our investee companies ending up as Emperor’s foie gras.

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