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INVESTMENT STRATEGIES
Emerging Markets Equity
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Overview
The strategy seeks to achieve long-term capital growth through investment in emerging market equities. Investment performance is derived primarily from stock selection. The investment team uses a five-year time horizon to value companies and considers both financial and non-financial risks. Understanding the track record and integrity of a management team are given significant emphasis in the investment process.
Investment Approach
- The investment team researches companies with significant emerging market economy exposure regardless of listing domicile, rather than just companies listed in emerging market indices.
- 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.
- The Portfolio typically holds 40 to 80 stocks. The top 10 holdings generally make up 30% to 50% of the portfolio.
Broad Opportunity Set
Long-Term, Quality Focus
High Conviction
Portfolio Management
Featured Insights
Emerging Markets Equity: What Do They Know?
Leading endowments’ emerging markets equity allocations are significantly overweight compared to other investor types. Suny Park, Chief Institutional Client Strategist, compares allocations and regional valuations, and encourages return-seeking investors to revisit their emerging markets equity allocations.
Performance
RETURNS
| Inception: Apr 01, 1987 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Composite Gross | 3.74% | 10.49% | 2.49% | 7.66% | 3.03% | 6.18% | 7.50% |
| Composite Net | 3.29% | 9.53% | 0.70% | 5.78% | 1.22% | 4.32% | 5.75% |
| MSCI Emerging Markets Index (Gross) | 0.74% | 10.76% | 1.61% | 11.06% | 2.87% | 6.17% | - |
| Inception: Apr 01, 1987 | 3M | YTD | 1YR | 3YR | 5YR | 10YR | Since Inception |
|---|---|---|---|---|---|---|---|
| Composite Gross | -2.55% | 2.89% | -2.36% | 3.44% | 0.94% | 4.26% | 7.22% |
| Composite Net | -2.98% | 1.69% | -4.08% | 1.63% | -0.83% | 2.42% | 5.48% |
| MSCI Emerging Markets Index (Gross) | 0.02% | 4.19% | -3.99% | 6.15% | 0.75% | 4.43% | - |
Past performance cannot guarantee future results. Investing involves risk, including the possible loss of principal and fluctuation of value. Returns greater than one year are annualized. Returns are expressed in U.S. dollars. Composite returns are net of transaction costs and gross of non-reclaimable withholding taxes, if any, and reflect the reinvestment of dividends and other earnings.
The gross performance results presented do not reflect the deduction of investment advisory fees and returns will be reduced by such advisory fees and other contractual expenses as described in the individual contract and Form ADV Part 2A.
Net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite but they do reflect the deduction of model investment advisory fees based on the maximum fee rate in effect for the respective time period, adjusted for performance-based fees where applicable. Actual advisory fees may vary among clients invested in the strategy shown and may be higher or lower than model advisory fees. Returns for each client will be reduced by such fees and expenses as negotiated in any client contract as discussed in Form ADV Part 2A.
The gross performance results presented do not reflect the deduction of investment advisory fees and returns will be reduced by such advisory fees and other contractual expenses as described in the individual contract and Form ADV Part 2A.
Net performance results do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite but they do reflect the deduction of model investment advisory fees based on the maximum fee rate in effect for the respective time period, adjusted for performance-based fees where applicable. Actual advisory fees may vary among clients invested in the strategy shown and may be higher or lower than model advisory fees. Returns for each client will be reduced by such fees and expenses as negotiated in any client contract as discussed in Form ADV Part 2A.