XXXXX | Emerging Markets Equity Select Fund
Important Notes
- The Fund invests primarily in equity and equity-linked securities which are listed or traded on recognised markets globally and issued by companies that: (1) trade principally on a recognised stock exchange in emerging market countries; (2) are organised under the laws of and have a principal office in emerging market countries; or (3) derive 50% or more of their total revenues from, and/or have 50% or more of their total assets in, goods produced, sales made, profits generated or services performed in emerging market countries.
- The Fund invests primarily in emerging markets and therefore is subject to emerging market and concentration risks. Emerging markets may be subject to additional risks due to more uncertainties relating to their social, economic and political factors. Negative factors in the development of emerging markets may affect the value of the underlying securities. The Fund is also subject to currency, currency hedging and equity risks.
- The Fund may use financial derivative instruments (“FDIs”) for efficient portfolio management and hedging purposes. FDIs, however, will not be extensively used for investment purposes. The Fund may be subject to higher counterparty, liquidity, valuation, volatility and over-the-counter transaction risks. This may result in a significant loss of the Fund.
- In respect of the distributing shares, the Fund aims to pay dividend on a monthly basis. However, the distribution rate is not guaranteed. The Fund may at its discretion pay dividends out of the capital of the Fund. Dividends paid out of capital amount to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Such dividends may result in an immediate decrease in the net asset value of the relevant shares.
- Investors should not solely rely on this document to make any investment decision. Please refer to the Prospectus for details including the risk factors before making any investment decision.
Why Invest
Globally diversified, contrarian approach to long-term capital growth by uncovering out-of-favor value opportunities across countries and sectors within emerging markets
Benchmark Agnostic Unconstrained Investment Style
Concentrated absolute-return focused portfolio of 30–50 value stocks selected through bottom-up research, agnostic to the MSCI Emerging Markets Index. The opportunity set is focused on larger, more liquid companies, being aware of each country’s macroeconomic backdrop rather than being macro-led.
Portfolio Construction Diversified Across Under-Valued Opportunities
Targets five categories of value opportunities: fallen angels, cyclicals, special situations, structural challenges and hidden growth. This mix adds an extra layer of diversification to a high-conviction portfolio.
Risk Management
Each stock is researched and modeled by both portfolio managers, with buy and sell decisions requiring their consensus. The fund’s risk scoring process evaluates a variety of company-specific financial criteria.
Fund Facts
Why Invest
An equity fund focused on emerging market companies we believe are positioned to benefit from domestic growth
Focus on Local Growth
Invests primarily in emerging markets, where GDP growth may be greater than developed markets
Flexibility Across Market Capitalisations
Historically, the Fund has been consistently overweight small and mid-cap emerging market companies
Quality Bias
Focus on stocks that in aggregate have higher ROE, lower net debt/EBITDA (excluding financials) and greater earnings growth potential than the benchmark
