Asia Equity Composite
Claim of compliance and performance examination
Vontobel Asset Management, Inc. (“Vontobel”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Vontobel has been independently verified for the periods from January 1, 2001 through December 31, 2022. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm's policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. The Asia Equity composite has had a performance examination for the periods from January 1, 2005 through December 31, 2022. The verification and performance examination reports are available upon request.
Firm definition
Vontobel is an investment advisory firm registered with the Securities and Exchange Commission, under the Investment Advisers Act of 1940, as amended, and a subsidiary of Vontobel Holding AG, Zurich, Switzerland. For GIPS purposes, the firm is defined as all institutional accounts managed by Vontobel Quality Growth boutique, excluding wrap accounts and private client assets managed in previous years.
Composite description
The Asia Equity Composite includes all discretionary accounts, excluding wrap accounts and private client assets, whose principal investments include equity or equity-linked securities of issuers located in the developed and emerging markets of Asia excluding Japan. The minimum account size for this composite is $1 million. The composite was created and incepted on January 1, 2001.
List of composites
The firm maintains a complete list and description of composites as well as a list of broad distribution pooled funds, which are available upon request.
GIPS policies
Policies for valuing investments, calculating performance and preparing GIPS Reports are available upon request.
Total firm assets
Total firm assets as of 12/31/2023: $24.633 mil.; 12/31/2022: $23,788mil.; 12/31/2021: $36.017mil.; 12/31/2020: $38.334mil.
Benchmark description
Since February 15, 2022, results of the composite are shown compared to the MSCI All Country Asia ex-Japan (MSCI AC Asia ex-Japan) Index, an unmanaged index of stocks traded in markets of the Asia region, excluding Japan. The benchmark was changed to provide a closer representative comparison versus the composite. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the investments in the composite. The current index is a free float-adjusted market capitalization index of approximately 1,250 stocks that is designed to measure equity market performance in 2 of 3 Developed Markets countries (excluding Japan) and 8 Emerging Markets countries in Asia. The index is calculated on a total return basis with net dividends reinvested. It reflects withholding taxes, but not fees and other investment expenses, and is expressed in U.S. Dollars. Investments made by Vontobel for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings and asset allocation from those of the MSCI AC Asia ex-Japan Index. The index has not been examined by an independent verifier. Prior to February 15, 2022, results of the composite were shown compared to the MSCI All Country Asia Pacific ex-Japan Index, an unmanaged index of stocks traded in markets of the Asia Pacific region, excluding Japan.
Withholding taxes
Net composite performance is presented after the deduction of foreign withholding taxes. Capital gains, dividends and interest income received may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable.
Calculation method
The U.S. Dollar is the currency used to express performance. Returns include the effect of foreign currency exchange rates. Returns are presented gross and net of management fees and include the reinvestment of all income. The gross rates of return are presented before the deduction of investment management fees and other investment-related fees, and after the deduction of foreign withholding taxes, brokerage commissions and transaction costs. The net rates of return are presented after the deduction of investment management fees, brokerage commissions, transaction costs, other investment-related fees, foreign withholding taxes and bundled fees. Such investment management fees are actual fees and do not contain any performance-based fee components. Withholding tax rates for the indices are applicable to Luxembourg withholding companies. Our withholding taxes, as captured in the composites, may vary from those captured in the index. Effective January 2016, the net returns reflect daily accruing of fees based on each account’s fee schedule. Prior to 2016, the net returns were calculated using actual fees recorded on a cash basis.
Fee schedule
The standard annual management fees charged by Vontobel for the Composite are: 0.95% on the first $100 million, 0.85% over $100 million. Certain accounts may have negotiated management fees, which may be higher or lower than the standard fee schedule. Investment advisory fees are further described in Part 2 of its Form ADV.
Significant event
Mr. Brian Bandsma took over the management of the Vontobel Asia Equity Strategy from March 7, 2016 to September 30, 2021. From June 30, 2020 to October 1, 2021, Mr. Jin Zhang and Mr. Ian Chun were the co-PMs for the strategy respectively. As of November 9, 2023, Mr. Chun is the PM for the strategy. There were no changes to the composite strategy as a result of these management changes.
Effective February 15, 2022, the composite name has changed from Asia Pacific Equity to Asia Equity. The benchmark has also changed from MSCI AC AP ex-Japan to MSCI AC Asia ex-Japan.
Past performance
Past performance is not indicative of future results. Investing involves risk, including possible loss of principal. Value and income received are not guaranteed and one may get back less than originally invested. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.