Sustainable Equities Boutique Emerging Markets Equities

Vontobel Fund - mtx Sustainable Emerging Markets Leaders

ISIN
LU0571085686
Valor
12236113

Fund strategy

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.


177.40
NAV
3.00%
Performance YTD
5 stars
As at Sep 18 2020 As of Aug 31 2020

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.

All data is as at Aug 31 2020 unless otherwise indicated.

Daily Performance

Periodic Performance

1M YTD 3Y 5Y SI
I USD 1.3% 3.2% 5.3% 13.3% 77.7%
Index 2.2% 0.4% 2.8% 8.7% 21.2%

Rolling Performance

Sep 01 2015 - Aug 31 2016 Sep 01 2016 - Aug 31 2017 Sep 01 2017 - Aug 31 2018 Sep 01 2018 - Aug 31 2019 Sep 01 2019 - Aug 31 2020
I USD 23.7% 29.2% 0.5% -0.4% 16.4%
Index 11.8% 24.5% -0.7% -4.4% 14.5%

Annual Performance

Risk Data

Portfolio
Volatility 17.4%
Sharpe ratio 0.2
Information ratio 0.6
Tracking error 3.7%
Jensens alpha 2.5%
Beta 0.9
[3 years annualized]
Past performance is not a reliable indicator of current or future performance. The return may go down as well as up, e.g. due to changes in rates of exchange between currencies. The value of invested monies 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 Sep 18 2020 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
Share Class Launch date Jul 15 2011
Distribution type Accum
Swinging single pricing Yes
Fund Registrations AT, CH, DE, ES, FI, FR, GB, IE, IT, LI, LU, NL, NO, PT, SE, SG
Share Class Registrations AT, CH, DE, ES, FI, FR, GB, IT, LI, LU, NL, NO, SE, SG
Nav Information
Highest since launch 182.04
Lowest since launch 79.09
Fund volume in mln. USD 7,418.10
Share class volume in mln. USD 1,871.89
Fees And Expenses
Management fee 0.83%
TER 1.16% (Feb 28 2020)
Identifiers
ISIN LU0571085686
Valor 12236113
Bloomberg VGREMEI LX
WKN A1JJMH
Parties
Depository RBC Investor Services Bank S.A.
Management Company Vontobel Asset Management S.A.
Swiss Paying Agent Bank Vontobel AG
Swiss Representative Vontobel Fonds Services AG

Available Share Classes

Share class Currency ISIN Distrib. Type Launch date Management fee TER TER Date
A USD LU0571085330 Dist Retail Jul 15 2011 1.65% 2.02% Feb 28 2020
AH (hedged) EUR LU1725744087 Dist Retail Dec 01 2017 1.65% 2.08% Feb 28 2020
AI USD LU1609308298 Dist Institutional May 18 2017 0.83% 1.16% Feb 28 2020
AN USD LU1683485681 Dist Retail Oct 10 2017 0.83% 1.20% Feb 28 2020
AN GBP LU1717118191 Dist Retail Nov 24 2017 0.83% 1.00% Feb 28 2020
ASX EUR LU1964740309 Dist Mar 22 2019 0.65% 0.74% Feb 28 2020
B USD LU0571085413 Accum Retail Jul 15 2011 1.65% 2.02% Feb 28 2020
G USD LU1767066605 Accum Institutional Mar 15 2018 0.65% 0.74% Feb 28 2020
H (hedged) EUR LU1646585114 Accum Retail Aug 11 2017 1.65% 2.08% Feb 28 2020
HI (hedged) EUR LU1650589762 Accum Institutional Aug 08 2017 0.83% 1.22% Feb 28 2020
HI (hedged) CHF LU1550202615 Accum Institutional Feb 28 2017 0.83% 1.22% Feb 28 2020
HN (hedged) CHF LU1725744830 Accum Retail Dec 04 2017 0.83% 1.26% Feb 28 2020
I EUR LU1626216888 Accum Institutional Jun 16 2017 0.83% 1.16% Feb 28 2020
I USD LU0571085686 Accum Institutional Jul 15 2011 0.83% 1.16% Feb 28 2020
N USD LU1626216961 Accum Retail Jun 16 2017 0.83% 1.20% Feb 28 2020
N GBP LU1618348582 Accum Retail May 31 2017 0.83% 1.00% Feb 28 2020
S USD LU1572142096 Accum Institutional Feb 28 2017 0.00% 0.20% Feb 28 2020
Click here to see an overview of our shareclass naming convention.

* TER includes performance fee where applicable

All data is as at Aug 31 2020 unless otherwise indicated.

Country Weighting

Major Sectors

Major equity positions

Stock Allocation
Alibaba Group Holding Ltd ADR 8.3%
Taiwan Semiconductor 7.0%
Tencent Holdings Ltd 6.4%
Samsung Electronics Shs 4.8%
Netease.Com -Adr- 3.8%
HDFC Bank Ltd 3.0%
Lg Household&Helth Care 2.9%
JD.com Inc ADR 2.6%
NCsoft Corp 2.4%
Polymetal Intl Plc 2.4%
Document Date DE EN ES FR IT
Factsheets & Commentaries
Factsheet Aug 2020
Monthly Commentary Aug 2020
Brochures
Product Flyer Oct 2019
KIIDs
KIID Jun 2020
Legal Documents
AGM EGM invitation Jan 2020
Articles of Association Apr 2016
Notification to Investors Apr 2020
Sales Prospectus Dec 2019
Financial Reports
Annual Report Aug 2019
Dividend Payout Jan 2019
Semi-Annual Report Feb 2020
Dealing Information
Holiday Calendar 2020 Jan 2020
List of Active Retail Share Classes Dec 2018
Policies
Sanctioned Countries Sep 2016
Shareclass Naming Convention Nov 2019

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

  • Price fluctuations of investments due to market, industry and issuer linked changes are possible

  • Investments in emerging markets may be affected by political developments, currency fluctuations, illiquidity and volatility

  • There is no guarantee that all sustainability criteria will always be met for every investment. Negative impact on subfund's performance possible due to pursuing sustainable economic activity rather than a conventional investment policy

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