4Factor team
|Featured

Emerging Markets ex China Equity Strategy

A solution seeking alpha opportunities in the EM ex-China universe

Hosta leaf

Featured insight

Deliberating EM equities

Emerging markets generate 58% of global GDP but represent just 9% of equity portfolios. To help investors unlock long-term value in the asset class, we share our latest ideas.

Strategy overview

Investment Approach
We seek to combine fundamental research with insights derived from our machine learning alpha model to unlock alpha, while considering sustainability without bias

Investment Opportunity
Solution to access emerging market ex China equity exposure

Investment Universe
Invests in equities either listed or domiciled in emerging markets ex China or which carry out a significant amount of their economic activity in emerging markets ex China

Archie Hart
Portfolio Manager, Emerging Markets Equities
Varun Laijawalla
Portfolio Manager, Emerging Markets Equities

The role the strategy can play in portfolios

All-weather core exposure to emerging market ex-China equities

Provides core exposure to broader emerging market equities ex China in a portfolio with balanced exposure to growth, quality, value and momentum through the cycle

Flexible approach clients managing their China exposure

Offers flexibility for clients to express their view on China equities through excluding China or pairing with a discrete China exposure

Long-term risk adjusted alpha profile

Offers potential for consistent excess returns through focus on bottom-up stock selection without taking excessive risk

Diversification

A differentiated alpha footprint that complements passive and/or style-based exposures; offers geographic diversification in non-US exposure

Investment Philosophy

01

We believe markets are inefficient due to behavioural biases

02

These inefficiencies generate diverse alpha opportunities across investment styles

03

Combining fundamental insight with quantitative analysis is the optimal way to unlock alpha

Performance

Why Ninety One for Emerging Markets ex China Equity Strategy

01

Managed by a specialist team with a long track record of investing in emerging markets

02

Underpinned by the consistent and compelling 4Factor investment process developed in 2000

03

Fundamental investors, harnessing technology

Strategy literature

Key facts

  • Asset Subclass

    EM Equity

  • Currency

    USD

  • Inception date

    01/01/2022

  • Team

    4Factor team

  • Geographical Focus

    Emerging Markets

  • ESG Classification

    ESG Integration

  • Comparative Benchmark

    MSCI Emerging Markets Equity ex China NDR

Contact our client service teams.

Get in touch

Risks

Currency Exchange

Changes in the relative values of different currencies may adversely affect the value of investments and any related income.

Default

There is a risk that the issuers of fixed income investments (e.g. bonds) may not be able to meet interest payments nor repay the money they have borrowed. The worse the credit quality of the issuer, the greater the risk of default and therefore investment loss.

Derivatives

The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Emerging Market

These markets carry a higher risk of financial loss than more developed markets as they may have less developed legal, political, economic or other systems.

Equity Investment

The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. insolvency), the owners of their equity rank last in terms of any financial payment from that company.

Interest Rate

The value of fixed income investments (e.g. bonds) tends to decrease when interest rates rise.

The content of this website is made available for informational purposes only and should not be construed as an offer, marketing, solicitation or investment advice with respect to any investment products or services. The website has not been reviewed or approved by any regulatory authority and may contain information with respect to investments products that may not be registered in some jurisdictions.

Although we believe any information obtained from external sources to be reliable, we have not independently verified it, and we cannot guarantee its accuracy or completeness (ESG-related data is still at an early stage with considerable variation in estimates and disclosure across companies. Double counting is inherent in all aggregate carbon data).

Any decision to invest in the Strategy described should be made after reviewing the offering document and conducting such investigation as an investor deems necessary and consulting its own legal, accounting and tax advisors in order to make an independent determination of suitability and consequences of such an investment. This material does not purport to be a complete summary of all the risks associated with this Strategy. A description of risks associated with the Strategy can be found in the relevant offering or other disclosure documents where applicable. Copies of such documents are available upon request.

Additional information on our investment strategies not found here (ninetyone.com/-/media/documents/miscellaneous/91-further-information-en.pdf) may be provided on request.

For more information on our Ninety One ESG Classification, please click here