Emerging Markets Leaders Strategy
Emerging Markets Leaders Strategy

Emerging Markets Leaders Strategy


The Emerging Markets Leaders Strategy seeks to deliver steady and sustainable returns over a longer course of time. The Strategy provides investors exposure to future growth industries and identifies what we consider to be the leading companies within those industries. The Strategy also chooses a focused number of high-quality, well-managed companies exhibiting strong capital discipline. Our approach seeks lower volatility and steady compounding growth to help deliver sustainable returns over the long run.

Target Alpha
Turnover Range
Expected Tracking Error
Inception Date
Investment Approach

Drawing on the Global Emerging Markets Equity team’s insight into the drivers of growth in emerging markets, the team seeks to identify secular, structural themes that support steady company earnings. The team bases its investment philosophy on proprietary research that shows how both macro-level and stock-specific factors can drive risks and returns in emerging markets. As a result, the team seeks to add value by integrating macro-thematic research and bottom-up stock selection with a growth bias. 

The team believes that in the long term, the dynamics of emerging markets can be beneficial to the earnings of selective growth companies. Rather than focus on short-term cyclical bubbles, the team takes a thematic approach to investing by identifying longer-term trends that are not fully appreciated by market participants. As often as possible, the team takes contrarian positions that allow them to discover sound reasons why the consensus overlooks or ignores elements of an opportunity where positive change may yet occur.


Forward-looking theme

The team identifies the most important investment growth themes in the emerging markets, and apply extensive bottom-up research to select the stocks they believe are best-placed to benefit. They seek to avoid volatile business models that can destroy value during down markets.

Benchmark-agnostic growth

The team expands the universe to include companies that earn a majority of their revenues from emerging markets, but target only 30 to 40 companies with a focus on growth and quality. Their approach is risk-managed and untied to a benchmark, with an expected high tracking error and lower standard deviation.                                                               

Compounding effects

The team seeks to outperform in declining markets and reduce a portion of the volatility inherent in emerging market equities. They believe this has led to higher, more stable returns over time through the potential power of compounding.

Investment Process
Thematic Growth

In identifying thematic growth, the team looks for underpenetrated industries, country-driven opportunities, low-capital intensity and competition, and minimal government involvement.

High-Quality Companies

The team looks for robust corporate goverence, strong management, earning predictability and growing market share.

Entry and Exit Prices

The team then looks for entry, sizing, and exit prices to construct the final portfolio. The final portfolio consists of approximately 30 to 40 high-quality companies with a growth bias. They target annual turnover of 30 to 40 percent.

Portfolio Managers
Managing Director
24 years industry experience
Executive Director
13 years industry experience
Market Outlook
An Emerging Markets Approach to ESG
Jan 05, 2018
The Global Emerging Markets Team discusses emerging markets (EM) and the approach they use to incorporate environmental, social, and governance (ESG) factors into their process.