Sustainable Equities Boutique Emerging Markets Equities

Vontobel Fund - mtx Sustainable Emerging Markets Leaders

ISIN
LU0571085686
Valor
12236113

Investment objective

This equity fund aims to generate long-term capital growth while considering specific sustainability criteria and respecting risk diversification.


Key features

The fund invests across emerging markets in a concentrated portfolio mainly including stocks of companies which are among the leaders in their industry, offer high and sustainable profitability potential, and whose stock prices have attractive upside versus the estimated enterprise values at the time of the investment.


Approach

The specialized and seasoned investment team takes long-term high-conviction investment decisions based on in-depth research combined with systematic screening. The team also considers environmental, social and governance criteria to select particular companies with farsighted strategies, sound financials and robust structures, convinced that these strengths can enhance a firm's future profitability potential and thus stock price. The team actively adapts portfolio positions to seize attractive new opportunities and control risks always in line with their latest assessment of investment conditions. They may use derivative financial instruments as well.


161.58
NAV
15.52%
Performance YTD
5 stars
As at 14 Nov 2019

Why invest?

  • Combination of systematic screens (“matrix”) and fundamental research to ensure style-consistent investment results and potential outperformance through the market cycle.
  • Strong focus on valuation as the entry point significantly determines the fund’s rate of return in the medium-term.
  • ESG integration improves risk management and enhances performance

"There are attractively valued and profitable industry leaders in emerging markets that know how to use their cash. Systematic screening helps find them."

Roger Merz, Head of mtx Portfolio Management

Investment process

There are some 1,400 stocks in the opportunity set but only about 400 pass a first filter that looks for high returns on invested capital (ROIC).

We subsequently examine the companies’ industry position, valuation and ESG metrics, which shrinks the number further to some 350, and, at a later stage, to around 150 candidates that could be included over the course of a year.

However, only 10 to 15 eventually make it into our concentrated portfolio of 30 to 50 stocks.

infograph-boutique-sustianable-and-thematic-mtx-approach_en

Investment opportunity – leaders tend to stay leaders

Dynamic growth rates in emerging markets have produced many profitable businesses in this region.

Market participants are often slow to fully acknowledge high ROICs, which we consider an important share price driver. This failure on the part of the market creates opportunities for stock pickers like us.

We use systematic screening as well as fundamental research to spot portfolio candidates with:

  • above-average quality in terms of ROIC, industry positioning and ESG
  • above-average growth
  • below-average valuation

Profitable companies with a superior industry position are able to invest into future growth – and their stocks often reflect this. Moreover, such leaders tend to stay leaders.

infograph-product-mtx-seml-roic_en

Investment philosophy – the leader takes it all

The investment philosophy is based on the belief that selecting the right companies drives performance over the long term. We are bottom-up stock pickers and use a rigorous investment framework to identify attractively valued industry leaders. Those companies offer consistently high returns on invested capital, a strong industry position and effectively address ESG issues.

Investment team

Two experienced portfolio managers, Roger Merz and Thomas Schaffner, are responsible for our entire mtx offering. Being true ambassadors for their cause, they invest their own money in the funds they manage.

They are supported by a team of 12 seasoned experts. These include professionals doing fundamental research as well as quantitative and ESG analyses.

The team constantly monitors the risk metrics not only of the companies, but also of aspects related to business cycles and portfolio characteristics.

Insights

Sustainable Equities Boutique
Outlook
Emerging Markets

Emerging markets: focus on stocks, not the market, as you enter the fourth quarter

The US-Chinese trade conflict has become a global worry, but the issue is sometimes blown out of proportion. While emerging-market investors take cover from trans-Pacific gales and local Asian thunderstorms, we stay the course. As stock pickers, we suggest three “gos”: go domestic, go stock-specific, and go cheap.

Read more

Sustainable Equities Boutique
Outlook
Emerging Markets Sustainable Investing

Emerging market equities: Outlook Q3 2019

Are emerging and developed markets increasingly correlated due to the trade war? Roger Merz, Head of mtx Portfolio Management, explains what declining correlations over the last couple of years mean for investors. Marc Bindschädler, Client Portfolio Manager, reviews Q2 and explains why he believes emerging market equities will remain attractive in Q3.

Read more

Sustainable Equities Boutique
Outlook
Emerging Markets Sustainable Investing

Emerging Market Equities: Outlook Q2 2019

After a negative 2018, emerging market equity markets rallied in Q1 2019. Roger Merz, Head of mtx Portfolio Management, explains why he believes emerging market equities will remain attractive in Q2. Thomas Schaffner, Senior Portfolio Manager, explains why he expects leading property developers in China to continue generating strong revenue and profit growth despite a relatively challenging environment.

Read more

All data is as at 31 Oct 2019 unless otherwise indicated.

Fund performance

Cumulative performance

1M YTD 3 YR 5 YR Since Inception
I USD 4.4% 15.4% 11.2% 8.6% 61.4%
Index 4.2% 10.7% 7.4% 2.9% 12.4%

Performance for 12 month periods

1 Nov 2014 - 31 Oct 2015 1 Nov 2015 - 31 Oct 2016 1 Nov 2016 - 31 Oct 2017 1 Nov 2017 - 31 Oct 2018 1 Nov 2018 - 31 Oct 2019
I USD -4.5% 14.8% 35.1% -13.5% 17.8%
Index -14.5% 9.3% 26.5% -12.5% 11.9%

Performance for calendar years

Volatility & risk

Portfolio
Volatility 14.2%
Sharpe Ratio 0.6
Information Ratio 0.9
Tracking error 4.0%
Jensens Alpha 4.0%
Beta 0.9
[3 years annualized]
Past performance is not a reliable indicator of current or future performance. Performance data does not take into account any commissions and costs charged when shares of the fund are issued and redeemed, if applicable. The return of the fund may go down as well as up due to changes in rates of exchange between currencies. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or part of your invested capital can be redeemed.

All data is as at 14 Nov 2019 unless otherwise indicated.

Fund data
Portfolio Manager Roger Merz/Thomas Schaffner
Fund Domicile Luxembourg
Fund Currency USD
Share Class Currency USD
End of fiscal year 31 August
Index MSCI Emerging Market TR net
Launch date 15 Jul 2011
Distribution type Accum
Swinging single pricing Yes
Nav Information
Highest since launch 179.58
Lowest since launch 79.09
Fund volume in mln. 4,622.70
Share class volume in mln. 1,429.19
Fees And Expenses
Management fee 0.83%
TER* 1.16% (28 Feb 2019)
Identifiers
ISIN LU0571085686
Valor 12236113
Bloomberg VGREMEI LX
WKN A1JJMH
Parties
Swiss Paying Agent Bank Vontobel AG
Swiss Representative Vontobel Fonds Services AG
Depository RBC Investor Services Bank S.A.
Management Company Vontobel Asset Management S.A.

Available Share Classes

Share class Currency ISIN Distrib. Type Launch date Management fee TER* TER Date
A USD LU0571085330 Dist Retail 15 Jul 2011 1.65% 2.03% 28 Feb 2019
AH (hedged) EUR LU1725744087 Dist Retail 1 Dec 2017 1.65% 2.09% 28 Feb 2019
AHI (hedged) EUR LU1711395035 Dist Institutional 6 Nov 2017 0.83% 1.22% 28 Feb 2019
AI EUR LU1717117979 Dist Institutional 24 Nov 2017 0.83% 1.16% 28 Feb 2019
AI USD LU1609308298 Dist Institutional 18 May 2017 0.83% 1.16% 28 Feb 2019
AN USD LU1683485681 Dist Retail 10 Oct 2017 0.83% 1.20% 28 Feb 2019
ASX EUR LU1964740309 Dist 22 Mar 2019 0.65%
B USD LU0571085413 Accum Retail 15 Jul 2011 1.65% 2.03% 28 Feb 2019
G USD LU1767066605 Accum Institutional 15 Mar 2018 0.65% 0.75% 28 Feb 2019
H (hedged) EUR LU1646585114 Accum Retail 11 Aug 2017 1.65% 2.09% 28 Feb 2019
HI (hedged) EUR LU1650589762 Accum Institutional 8 Aug 2017 0.83% 1.22% 28 Feb 2019
HN (hedged) CHF LU1725744830 Accum Retail 4 Dec 2017 0.83% 1.26% 28 Feb 2019
I EUR LU1626216888 Accum Institutional 16 Jun 2017 0.83% 1.16% 28 Feb 2019
I USD LU0571085686 Accum Institutional 15 Jul 2011 0.83% 1.16% 28 Feb 2019
N USD LU1626216961 Accum Retail 16 Jun 2017 0.83% 1.20% 28 Feb 2019
N EUR LU1918004273 Accum Retail 20 Dec 2018 0.83% 1.20% 28 Feb 2019
S USD LU1572142096 Accum Institutional 28 Feb 2017 0.00% 0.21% 28 Feb 2019
Click here to see an overview of our shareclass naming convention.

* TER includes performance fee where applicable

All data is as at 31 Oct 2019 unless otherwise indicated.

Country Weighting

Major Sectors

Major equity positions

Stock Allocation
Taiwan Semiconductor 5.7%
Alibaba Group Holding Ltd ADR 4.8%
Tencent Holdings Ltd 4.3%
Oil company LUKOIL PJSC ADR 3.6%
Ping An Insurance -H- Shs 3.5%
B3 SA - Brasil Bolsa Balcao 3.3%
China Gas Hldgs Ltd Shs 3.3%
NCsoft Corp 2.8%
PT Telekomunikasi Indonesia (Persero) Tbk 2.8%
China Resources Land Shs 2.7%
Document Date DE EN ES FR IT
Factsheets & Commentaries
Factsheet Oct 2019
Monthly Commentary Oct 2019
Brochures
Product Flyer Oct 2019
KIIDs
KIID Oct 2019
Legal Documents
Articles of Association Apr 2016
Sales Prospectus May 2019
Financial Reports
Annual Report Aug 2018
Dividend Payout Jan 2019
Semi-Annual Report Feb 2019
Dealing Information
Holiday Calendar Jan 2019
Policies
Sanctioned Countries Sep 2016
Shareclass Naming Convention Nov 2019

Opportunities

  • Broad diversification across numerous securities

  • Possible extra returns through single security analysis and active management

  • Gains on invested capital possible

  • Use of derivatives for hedging purposes may increase subfund's performance and enhance returns

Risks

  • Limited participation in the potential of single securities

  • Success of single security analysis and active management cannot be guaranteed

  • It cannot be guaranteed that the investor will recover the capital invested

  • Derivatives entail risks relating to liquidity, leverage and credit fluctuations, illiquidity and volatility