December 15, 2015
We have managed emerging market stocks since the mid-1990s. In early 2011, we launched a dedicated emerging market strategy. This mandate allows the purchase of any emerging market security with a market cap of $100 million or greater with sufficient liquidity and analyst coverage to allow for the purchase of the security in institutional quality portfolios, and allow us to implement our qualitative overview. The firm can opportunistically add frontier market positions to these portfolios. The Emerging Market mandate is invested using our earnings-based process. As with all of our portfolios, we employ an all-cap strategy. The ability to invest across the market cap spectrum is particularly important in emerging markets. Historically, within the emerging markets universe, the best returns have often come from smaller, lower volume securities. Compared to our competitors, our Emerging Market portfolios will often have more weight represented by smaller, less liquid companies. For this reason, our emerging market mandate is capacity constrained. Our Emerging Markets strategy is usually benchmarked against the MSCI Emerging Markets Growth Index, and is available as a separate account or a U.S. commingled product.