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HEMSX

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Emerging Markets Fund

Identifying High Quality Emerging Market Companies at Reasonable Prices
NAV As of 02/20/19 $9.32

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Fund Facts

Details Performance (As of 02/20/19) Morningstar (As of 01/31/19)
12/31/10 Inception Date
$142.40M Total Net Assets (As of 01/31/19)
GROSS 1.86%
NET 1.54%
Annual Expense Ratio
(As of fiscal year end 09/30/18)
0.87% 1 Day Return
6.76% YTD Return
Category
Diversified Emerging Mkts
LARGE VALUE
LARGE BLEND
LARGE GROWTH
MID VALUE
MID BLEND
MID GROWTH
SMALL VALUE
SMALL BLEND
SMALL GROWTH
Equity Style Box *
Important Morningstar Information

Overview

Client Commitment

A fund that aims to achieve a long-term return in excess of the return that is typically achieved from emerging equity markets. The investment team is comprised of bottom-up investors seeking to create high-conviction portfolios of reasonably valued, high-quality companies.

Why Invest in the Fund

    Long-Term, Quality Focus

  1. The investment team considers companies on the basis that the stocks would be bought and held for five years – allowing the team to select companies in the absence of short-term market noise. The team prefers to focus on quality companies with proven track records, strong franchises and management teams with a history of integrity.
  2. Non-Index Portfolio Construction

  3. The benchmark is not used as a starting point for portfolio construction with sector and geographic exposures the result of stock selection.
  4. Risk-Aware Approach to Capital Appreciation

  5. The Fund provides exposure to the emerging markets opportunity set but in a risk-aware way. The team employs an absolute mindset to risk rather than considering risk as relative underperformance.

Featured Insights

Performance

RETURNS

(As of 12/31/2018)
(As of 01/31/2019)
Inception: Dec 31, 2010 3M YTD 1YR 3YR 5YR 10YR Since Inception
Emerging Markets Fund – S Shares -5.35% -16.89% -16.89% 5.46% 0.18% - -0.88%
MSCI Emerging Markets Index℠ -7.46% -14.57% -14.57% 9.25% 1.65% 8.02% 0.24%
Inception: Dec 31, 2010 3M YTD 1YR 3YR 5YR 10YR Since Inception
Emerging Markets Fund – S Shares 7.50% 6.30% -15.55% 9.59% 2.74% - -0.12%
MSCI Emerging Markets Index℠ 10.24% 8.76% -14.24% 14.89% 4.77% 9.66% 1.28%
Returns quoted are past performance and do not guarantee future results; current performance may be lower or higher. Investment returns and principal value will vary; there may be a gain or loss when shares are sold.
View Fees and Expenses

MORNINGSTAR PERCENTILE

(As of 12/31/2018)
(As of 01/31/2019)
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 59 72 60 - 65
Diversified Emerging Mkts Category
Rank/Count
473/860 576/785 396/640 -/- 282/409
1 YR 3 YR 5 YR 10 YR SINCE INCEPTION
Percentile Ranking (%) 59 76 69 - 70
Diversified Emerging Mkts Category
Rank/Count
476/867 605/790 467/646 -/- 304/412

CALENDAR YEAR PERFORMANCE

GROWTH OF A $10,000 HYPOTHETICAL INVESTMENT

Source: Morningstar, Inc.
This graph compares fund performance to that of the fund’s Morningstar category average and benchmark(s).

RETURNS-BASED STATISTICS

(As of 01/31/19 CLASS I SHARES)

RISK / REWARD
VS. MSCI EMERGING MARKETS INDEX℠

3 YEAR 5 YEAR
Information Ratio -0.84 -0.26
Alpha -2.03 -0.56
Tracking Error 5.83 6.00
Beta 0.83 0.79
R-Squared (%) 84.62 85.21

UP AND DOWN MARKET CAPTURE (%)
VS. MSCI EMERGING MARKETS INDEX℠

3 YEAR 5 YEAR
Up Capture Ratio 82.73 81.85
Down Capture Ratio 101.31 88.32

STANDARD DEVIATION

3 YEAR 5 YEAR
Emerging Markets Fund 13.43 13.11
MSCI Emerging Markets Index℠ 14.84 15.35

SHARPE RATIO

3 YEAR 5 YEAR
Emerging Markets Fund 0.67 0.20
MSCI Emerging Markets Index℠ 0.93 0.27

ANNUAL FEES & EXPENSES

(As of Fiscal Year End, 09/30/18)

CLASS S SHARES
Management Fees 1.00%
12b-1 Fees 0.25%
Other Expenses 0.61%
Total Gross Expenses 1.86%
Waivers -0.32%
Total Net Expenses 1.54%
Net expense ratios reflect the expense waiver, if any, contractually agreed to through 2/1/20.

Characteristics

Index represents the MSCI Emerging Markets Index℠.

TOP HOLDINGS

(As of 01/31/2019)

% of Fund
Tiger Brands Ltd 4.55
Uni-President Enterprises Corp 4.53
Newcrest Mining Ltd 4.01
Tata Consultancy Services Ltd 4.00
Fomento Economico Mexicano SAB de CV (ADR) 3.42
Remgro Ltd 3.01
Heineken Holding NV 2.98
LG Corp 2.88
Cia Cervecerias Unidas SA (ADR) 2.76
Unilever PLC 2.73
TOTAL 34.87

PORTFOLIO CHARACTERISTICS

(As of 01/31/19)

FUND INDEX
Number of Holdings
Equity Issues
64
1124
Market Capitalization
Weighted Average
$18.22B
$91.59B
Portfolio Turnover Rate
(1-year trailing)
24.54%
-
Price/Earnings Ratio
(1-year forward)
19.52
17.74
Price/Book Ratio
(1-year forward)
2.98
2.98
Earnings Growth Rate
(1-year forward)
5.10%
7.88%

SECTOR ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
Consumer Staples 38.89 6.54
Financials 13.33 24.83
Materials 10.59 7.34
Information Technology 9.72 14.28
Consumer Discretionary 6.30 10.87
Industrials 5.17 5.42
Utilities 4.83 2.62
Health Care 3.72 2.73
Energy 0.84 8.09
Communication Services 0.71 14.16
Cash & Equivalents 5.90 -

MARKET CAPITALIZATION RANGE OF EQUITY HOLDINGS

(As of 01/31/2019)

% OF FUND % OF INDEX
Over $100B 4.01 26.54
$50B to $100B 3.50 7.76
$10B to $50B 29.46 35.30
$5B to $10B 21.54 15.37
$1B to $5B 25.28 10.92
$500M to $1B 7.32 -
$250M to $500M 0.91 -
N/A 2.08 4.11

REGIONAL ALLOCATION

(As of 01/31/19)

% OF FUND % OF INDEX
Asia/Pacific Ex Japan 46.35 72.37
Latin America 19.02 12.82
Africa/Mideast 18.83 8.27
Europe 8.20 6.54
North America 1.70 -
Cash & Equivalents 5.90 -

Commentary & Literature