Emerging markets: focus on stocks, not the market, as you enter the fourth quarter
This equity fund aims to generate long-term capital growth while considering specific sustainability criteria and respecting risk diversification.
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.
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.
"There are attractively valued and profitable industry leaders in emerging markets that know how to use their cash. Systematic screening helps find them."
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.
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:
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.
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.
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 31 Oct 2019 unless otherwise indicated.
|1M||YTD||3 YR||5 YR||Since Inception|
|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|
|[3 years annualized]|
All data is as at 14 Nov 2019 unless otherwise indicated.
|Portfolio Manager||Roger Merz/Thomas Schaffner|
|Share Class Currency||USD|
|End of fiscal year||31 August|
|Index||MSCI Emerging Market TR net|
|Launch date||15 Jul 2011|
|Swinging single pricing||Yes|
|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|
|TER*||1.16% (28 Feb 2019)|
|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.|
|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|
* TER includes performance fee where applicable
All data is as at 31 Oct 2019 unless otherwise indicated.
|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%|
|PT Telekomunikasi Indonesia (Persero) Tbk||2.8%|
|China Resources Land Shs||2.7%|
|Factsheets & Commentaries|
|Monthly Commentary||Oct 2019|
|Product Flyer||Oct 2019|
|Articles of Association||Apr 2016|
|Sales Prospectus||May 2019|
|Annual Report||Aug 2018|
|Dividend Payout||Jan 2019|
|Semi-Annual Report||Feb 2019|
|Holiday Calendar||Jan 2019|
|Sanctioned Countries||Sep 2016|
|Shareclass Naming Convention||Nov 2019|
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
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