Vontobel Fund - mtx Sustainable Emerging Markets Leaders

Conviction Equities Boutique Emerging Markets Equities
ISIN
LU0571085413
Valor
12236106
Sedol
B8B9CY9
150.71
NAV
As at 31 Oct 2024
9.54%
Performance YTD

Investment objective

This equity fund aims to generate long-term capital growth and seeks to promote environmental and social characteristics while 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, seek to promote environmental or social practices, 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 integrates sustainability indicators as a central pillar in the investment process with the aim of improving the long-term risk-return characteristics of the fund's portfolio and supporting elevated social or environmental practices. 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.

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.

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

Our experienced portfolio managers Thomas Schaffner and Raphael Lüscher are responsible for our mtx offering. As true ambassadors for the cause, they are invested themselves in the funds they manage. They can draw upon a capable team of analysts providing comprehensive fundamental research, including quantitative and ESG analyses. In addition to the company-specific risk metrics, the team also keeps a close eye on the risk aspects related to business cycles and portfolio characteristics.

Insights

Conviction Equities Boutique
2024-09-30_investing-in-em-equities-in-the-digital-age-teaser.jpg
Event Replay

Investing in EM equities in the digital age

Watch our livestream where Jean-Louis Nakamura, Head of Vontobel Conviction Equities, hosts a discussion between Viktor Shvets, Head of Global Desk Strategy at Macquarie and Anthony Corrigan, Client Portfolio Manager, about the role that emerging market (EM) equities play in today’s global equity portfolio and what key factors need to be considered when building a resilient EM equity portfolio.
Watch now

All data is as at 30 Sep 2024 unless otherwise indicated.

Fund performance

Cumulative performance

1M YTD 1Y 3 yrs p.a. 5 yrs p.a. Since Inception
B USD 6.6% 14.3% 20.4% -3.6% 1.8% 57.3%
Index 6.7% 16.9% 26.1% 0.4% 5.7% 42.6%

Performance for calendar years

2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
B USD 5.6% -26.6% -7.1% 19.5% 22.1% -16.1% 47.8% 8.7% -6.3% 7.4%
Index 9.8% -20.1% -2.5% 18.3% 18.8% -14.8% 37.3% 11.2% -14.9% -2.2%

Portfolio characteristics

Portfolio
Volatility 19.3%
Sharpe Ratio negative
Information Ratio negative
Tracking error 5.9%
Jensens Alpha -3.7%
Beta 1.0
[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, e.g. 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 31 Oct 2024 unless otherwise indicated.

Fund data
Portfolio Manager Raphael Lüscher/Thomas Schaffner
Fund Domicile Luxembourg
Fund Currency USD
Share Class Currency USD
Year End 31 August
Index MSCI Emerging Markets TR net
Share Class Launch date 15 Jul 2011
Distribution Type Accumulating
Swing pricing Yes
SFDR Classification Article 8
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, IT, LI, LU, NO, PT, SE, SG
Nav Information
Highest since launch 212.86
Lowest since launch 78.94
Share class size in mln. USD 334.11
Fees And Expenses
Management fee 1.65%
TER* 2.03% (29 Feb 2024)
Identifiers
ISIN LU0571085413
Valor 12236106
Bloomberg VGREMEB LX
SEDOL B8B9CY9
WKN A1JJMA
Parties
Depository State Street Bank International GmbH (Luxembourg Branch)
Management Company Vontobel Asset Management SA, Luxembourg
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*
A USD LU0571085330 Distributing Retail 15 Jul 2011 1.65% 2.03% (29 Feb 2024)
AG USD LU1993004743 Distributing Institutional 15 May 2019 0.65% 0.75% (29 Feb 2024)
AH (hedged) EUR LU1725744087 Distributing Retail 1 Dec 2017 1.65% 2.09% (29 Feb 2024)
AI USD LU1609308298 Distributing Institutional 18 May 2017 0.82% 1.17% (29 Feb 2024)
AN GBP LU1717118191 Distributing Retail 24 Nov 2017 0.82% 1.01% (29 Feb 2024)
AN USD LU1683485681 Distributing Retail 10 Oct 2017 0.82% 1.21% (29 Feb 2024)
B USD LU0571085413 Accumulating Retail 15 Jul 2011 1.65% 2.03% (29 Feb 2024)
G USD LU1767066605 Accumulating Institutional 15 Mar 2018 0.65% 0.75% (29 Feb 2024)
H (hedged) EUR LU1646585114 Accumulating Retail 11 Aug 2017 1.65% 2.09% (29 Feb 2024)
HI (hedged) EUR LU1650589762 Accumulating Institutional 8 Aug 2017 0.82% 1.23% (29 Feb 2024)
HI (hedged) CHF LU1550202615 Accumulating Institutional 28 Feb 2017 0.82% 1.23% (29 Feb 2024)
HN (hedged) CHF LU1725744830 Accumulating Retail 4 Dec 2017 0.82% 1.27% (29 Feb 2024)
HN (hedged) EUR LU1936213682 Accumulating Retail 30 Jan 2019 0.82% 1.27% (29 Feb 2024)
I EUR LU1626216888 Accumulating Institutional 16 Jun 2017 0.82% 1.17% (29 Feb 2024)
I USD LU0571085686 Accumulating Institutional 15 Jul 2011 0.82% 1.17% (29 Feb 2024)
N USD LU1626216961 Accumulating Retail 16 Jun 2017 0.82% 1.21% (29 Feb 2024)
N GBP LU1618348582 Accumulating Retail 31 May 2017 0.82% 1.01% (29 Feb 2024)
N EUR LU1918004273 Accumulating Retail 20 Dec 2018 0.82% 1.21% (29 Feb 2024)
S USD LU1572142096 Accumulating Institutional 28 Feb 2017 0.00% 0.21% (29 Feb 2024)

Subject to change, without notice, only the current prospectus or comparable document of the fund is legally binding.
Click here to see an overview of our shareclass naming convention.

* TER includes performance fee where applicable

All data is as at 30 Sep 2024 unless otherwise indicated.

Country Weighting

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Monthly Commentary Sep 2024
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PRIIPs KIDs
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Legal Documents
AGM EGM invitation Jan 2024
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AGM EGM invitation May 2021
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AGM EGM invitation Jan 2020
Articles of Association Apr 2016
Notification to Investors Oct 2024
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Notification to Investors Jun 2024
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Notification to Investors Nov 2022
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Notification to Investors Sep 2021
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Notification to Investors Apr 2020
Notification to Investors Mar 2020
Notification to Investors Nov 2019
Sales Prospectus Oct 2024
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Sustainability Related Disclosures
Periodic Disclosure Aug 2023
Pre-contractual Disclosure Jul 2024
Statement on principal adverse impacts of investment decisions on sustainability factors Jun 2024
Sustainability Related Disclosures Jan 2024
Financial Reports
Annual Distribution Nov 2023
Annual Report Aug 2023
Distribution Dates Jan 2024
Quarterly Distribution Sep 2024
Quarterly Distribution Jun 2024
Quarterly Distribution Mar 2024
Semi-Annual Report Feb 2024
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Dealing Information
Holiday Calendar 2024 Jan 2024
List of Active Retail Share Classes Mar 2024
Policies
mtx ESG Guidlines Sep 2024
Sanctioned Countries Oct 2022
Shareclass Naming Convention Jan 2022

RISKS

Subject to change, without notice, only the current prospectus or comparable document of the fund is legally binding.

  • 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

  • The Sub-Fund’s investments may be subject to sustainability risks. The sustainability risks that the Sub-Fund may be subject to are likely to have an immaterial impact on the value of the Sub-Funds’ investments in the medium to long term due to the mitigating nature of the Sub-Fund’s ESG approach.
  • The Sub-Funds' performance may be positively or negatively affected by its sustainability strategy.
  • The ability to meet social or environmental objectives might be affected by incomplete or inaccurate data from third-party providers.

  • Information on how sustainable investment objectives are achieved and how sustainability risks are managed in this Sub-Fund may be obtained here.

Neither the Sub-Fund, nor the Management Company nor the Investment Manager make any representation or warranty, express or implied, with respect to the fairness, correctness, accuracy, reasonableness or completeness of an assessment of ESG research and the correct execution of the ESG strategy.

Morningstar rating: © 2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

ANY INDEX OR SUPPORTING DATA REFERRED TO HEREIN IS THE INTELLECTUAL PROPERTY (INCLUDING REGISTERED TRADEMARKS) OF THE APPLICABLE LICENSOR. ANY PRODUCT BASED ON AN INDEX IS IN NO WAY SPONSORED, ENDORSED, SOLD OR PROMOTED BY THE APPLICABLE LICENSOR AND IT SHALL NOT HAVE ANY LIABILITY WITH RESPECT THERETO. Refer to vontobel.com/terms-of-licenses for more details.