SEEM uses a stock-kicking rather than stock-picking approach. Equity investments in emerging markets are expected to deliver very attractive returns overall, but are confronted with substantial risks attached to certain companies and countries. Risk mitigation takes place at country and company level. Firstly, countries with a poor investment rating are underweighted or even eliminated from the portfolio. Secondly, the individual company’s environmental and social exposure is assessed to minimize investment risks, which are related to gross violations of national laws or international standards (norm-based exclusion).