MSCI Emerging Markets Index
Performance Start Date
Closed to new investments.*
The Emerging Markets team invests in sound businesses that we believe are mispriced by the market and can generate positive and sustainable earnings growth, thus enabling them to achieve economic profits over time.
The Emerging Markets Equity investment process employs a fundamental, bottom-up approach:
Initial Filters: The universe contains more than 5,000 stocks from 27 emerging countries. Stocks with a market capitalization under US$500 million and a Cash Flow Return on Investment (CFROI) less than 10% are excluded, leaving approximately 450 securities for further analysis.
Fundamental Analysis: Each analyst reviews the companies in their assigned sector, assessing the best candidates for the portfolio based on their franchise value, competitive advantage and investment profile. This leaves approximately 150 companies on the 'Priority List' to undergo further in-depth fundamental analysis in three stages: quantitative analysis, financial analysis and determining the fair value of the company.
Portfolio Construction: Portfolios are constructed primarily based on a bottom-up approach. A range of 70-90 securities helps attain broad diversification of the strategy.
* The strategy is closed to new investments. The Emerging Markets Focused Equity Strategy is managed by the same investment team, using the same investment philosophy which is based on EVA and similar investment processes.