Martin Currie Emerging Markets Portfolios

Investment Overview

The Martin Currie Emerging Markets Portfolios strive to provide long-term capital appreciation through investments in equity and related securities of emerging market and developing countries across Asia, the Indian subcontinent, Latin/Central America, the Middle East, Eastern/Central Europe and Africa. The strategy will access emerging market companies through investments in individual American Depository Receipts (ADRs) and through a newly created, no-fee mutual fund advised by Martin Currie.
 

Investment Philosophy

Martin Currie believes that sustainable cash flows and the effective allocation of capital are the main determinants of emerging markets’ companies share-price movement. The team believes that superior returns are under constant threat from competition and looks for business models that can resist this competitive pressure for longer than the market currently expects. 
 

Key Differentiators

Distinctive structure

The Portfolio combines investments in ADRs with investments in shares of a newly created, no-fee mutual fund. Since many international companies – especially those in emerging markets like South Korea, Taiwan and India – do not have an American Depositary Receipts (ADR) program or are poorly represented, the Portfolio can offer greater breadth of exposure to emerging market companies than can be found through ADRs alone.

Embedded ESG analysis

Environmental, social and governance (ESG) factors affect a company’s finances, reputation and corporate value. ESG analysis is embedded into the Martin Currie research process to help identify companies likely to deliver long-term sustainable growth.

High-conviction approach

The Portfolio’s investment team focuses on the ideas in which its conviction is the highest. This careful approach to security construction results in a high-conviction portfolio of 30-60 stocks that is still broadly diversified across countries and sectors.
 

Diversification does not guarantee a profit or protect against a loss.

There is no guarantee that the Portfolio's objectives will be met.

 

 

Investment
Process

Idea generation

  • Ideas are sourced in a variety of ways – company screening, meetings with company leadership, industry research and analysis or research trips to see first-hand opportunities in local markets.
  • This step is intended to identify companies where the market has been slow to incorporate new information yet have the potential for high risk-adjusted returns. 

Fundamental analysis

  • Our process uses financial, qualitative and top-down analysis with the goal of developing a detailed picture of a company’s operating performance.
  • Sustainability analysis is embedded within the fundamental research process, providing a framework to identify factors that can have a material impact on cashflows, balance sheets and corporate value. 

Stock Discussion

  • No stock goes into the approved research list until it goes through the full investment process.
  • All stocks on the approved research list requires unanimous approval from the emerging markets team.
  • No stock goes into the portfolio unless it is on the approved research list.

High Conviction Portfolio Construction

  • The highly risk-aware process results in a portfolio of 30-60 stocks reflecting the team’s highest conviction ideas.
  • Absolute confidence is required in every company owned.

The investment process may change over time. The characteristics set forth above are intended as a general illustration of some of the criteria the strategy team considers in selecting securities for client portfolios. There is no guarantee investment objectives will be achieved.

 

 

meet your managers

Active equity specialist that builds global, stock-driven portfolios based on fundamental research – devoted to delivering optimum investment outcomes and superior client relationships.


Kim Catechis

Head of Emerging Markets

Andrew Mathewson, CFA

Portfolio Manager

To find out more about the Martin Currie Emerging Markets Portfolios, talk to your financial advisor.


 

What I Should Know
Before Investing

All investments involve risk, including loss of principal and there is no guarantee that investment objectives will be met.  The managers invest the portfolios primarily in ADRs, but may also make limited investments in U.S.-traded stocks of non-U.S. and U.S. companies engaged in significant non-U.S. business. These limited investments may include U.S.-traded stocks that result from the conversion of ADRs, as well as other U.S.-traded stocks. The portfolios' investments in non-U.S. companies may include companies in developed and emerging markets which involve risks in addition to those ordinarily associated with investing in U.S.-traded stocks, including the potentially negative effects of currency fluctuation, political and economic developments, foreign taxation and differences in audition and other financial standards.  These risks are magnified in emerging markets. Investments may be made in small- and mid-cap companies, which involve a higher degree of risk and volatility than investments in large-cap companies. 

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GIPS End Notes not applicable for this product
Not Applicable

All investments involve risk, including loss of principal. Past performance is no guarantee of future results. Please see each product’s webpage for specific details regarding investment objective, risks associated with hedge funds, alternative investments and other risks, performance and other important information. Review this information carefully before you make any investment decision.

Certain SMA products may not be available at all firms. 

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