About Global Emerging Markets
The Martin Currie Global Emerging Markets strategy offers investors a diverse opportunity set and superior growth prospects driven by the long-term, powerful drivers of a young and growing population, rising urbanisation and a growing middle class.
As long-term investors, we use bottom-up, fundamental research to identify high quality companies with robust balance sheets and sustainable growth potential. Our process for identifying the very best investment opportunities in emerging markets is underpinned by our long-term investment philosophy and belief that companies exhibiting these characteristics are frequently undervalued by the market.
ESG factors are embedded in the investment process and engagement is viewed as an essential element of our analysis. Top-down factors are considered a source of risk, as such, a member of the team is dedicated to macro and political research. Investors can expect relative performance to be delivered on the strength of individual investments and not a particular market outcome.
Our investment philosophy is founded on a belief that the market frequently misprices a company’s long-term, value-creation potential; as long-term investors, we are able to identify the nature and scale of the mispricing through rigorous fundamental research.
We seek to add further value by investing in quality companies that exhibit the strongest growth characteristics.
Combining this approach with active stock picking is how we seek to deliver superior alpha over the long term for our clients.
Martin Currie has been managing dedicated emerging markets portfolios since 1991. Our team is focused on managing one strategy and portfolios reflect our highest-conviction ideas from within the emerging-markets universe.
We are very clear that we can add value through bottom-up stock selection and build portfolios that reflect responsible stewardship of our clients' capital.
The result is a high-conviction portfolio of 40-60 of high-quality, sustainable growth emerging market companies.
| Portfolio characteristics | Global Emerging Markets |
|---|---|
| Long-term objective | To outperform the MSCI Emerging Markets Index by +3% p.a. over rolling three to five-year periods. |
| Benchmark | MSCI Emerging Markets Index |
| Market capitalisation | All-Cap |
| Sector/country allocations | As a result of stock selection- managed within factor risk analysis |
| Security limit | Maximum 10% absolute stock weight |
| Number of stocks | 40-60 |
| Portfolio turnover | Low - expected turnover |
| Forecast tracking error | Maximum of 8% per annum |
| Inception | 13 September 1991 |
The time is right for investing in emerging markets
The interplay of mega cities with new technology and the rapid growth of middle class consumers is giving rise to some truly world class emerging market companies.
Alastair Reynolds
Portfolio Manager
Alastair Reynolds
- Job title
- Portfolio Manager
- Experience
- 30 years
Andrew Mathewson
- Job title
- Portfolio Manager
- Experience
- 18 years
Colin Dishington
- Job title
- Portfolio Manager
- Experience
- 10 years
Divya Mathur
- Job title
- Portfolio Manager
- Experience
- 25 years
Paul Desoisa
- Job title
- Portfolio Manager
- Experience
- 7 years
Paul Sloane
- Job title
- Portfolio Manager
- Experience
- 27 years
Strategy factsheet
Strategy composite, net of fees (US$)
| 30 September 2020 | Three months (%) | One year (%) | Three years (% p.a.) | Five years (% p.a.) | Since manager tenure (% p.a.) |
|---|---|---|---|---|---|
| Global Emerging Markets strategy | 12.9 | 17.2 | 5.6 | 13.4 | 4.2 |
| MSCI Emerging Markets | 9.7 | 10.9 | 2.8 | 9.4 | 2.9 |
| Relative return | 2.9 | 5.6 | 2.8 | 3.7 | 1.3 |
Past performance is not a guide to future returns. Data calculated in US$ net of fees. The return may increase or decrease as a result of currency fluctuations.
Source: Martin Currie as at 30 September 2020. Data shown is for the Martin Currie Global Emerging Markets strategy composite (US$). Data is presented net of investment advisory fees, broker commissions, and all other expenses borne by investors. An annual fee rate of 0.70% has been used in the presentation of net performance data. This is our standard fee offering for a US$100 million mandate for this strategy. The figures provided include the re-investment of dividends. Relative calculation is geometric. Since manager tenure shows the performance of the strategy since 1 October 2010.
This performance record is a clear representation of the Martin Currie Global Emerging strategy performance over the periods shown. Performance information showing five years (or since inception) in complete 12-month periods is available upon request. This data is supplementary to the GIPS disclosures provided in the appendix of this document.
Largest positions
| Stock | Active weight (%) |
|---|---|
| Taiwan Semiconductor | 3.8 |
| LG Chem | 3.6 |
| EPAM Systems | 3.2 |
| Samsung Electronics | 2.7 |
| Tencent Holdings | 2.5 |
| Titan Industries | 2.2 |
| AIA | 2.2 |
| Prosus | 2.0 |
| Meituan Dianping | 1.8 |
| Ping An Insurance | 1.8 |
Stock attribution
| Top five contributors Q3 2020 | Contribution to relative return (%) |
|---|---|
| Taiwan Semiconductor | 1.2 |
| LG Chem | 0.8 |
| EPAM Systems | 0.5 |
| Alibaba | 0.4 |
| Minth | 0.4 |
| Bottom five contributors Q3 2020 | Contribution to relative return (%) |
|---|---|
| OTP Bank | (0.4) |
| Industrial & Comm Bank of China | (0.3) |
| Lukoil | (0.2) |
| China Gas Holdings | (0.2) |
| OdontoPrev | (0.2) |
Past performance is not a guide to future returns.
Source: Martin Currie as at 30 September 2020. Data shown is for the Martin Currie Global Emerging Markets representative account. Relative return contribution calculation is geometric. MSCI Emerging Markets Index used as benchmark.
The information provided should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any of the security transactions discussed here were, or will prove to be, profitable.
Sector exposure
| Sector | Portfolio (%) | Index (%) |
|---|---|---|
| Information Technology | 27.1 | 18.5 |
| Financials | 19.7 | 17.1 |
| Consumer Discretionary | 19.6 | 20.2 |
| Communication Services | 11.2 | 12.7 |
| Materials | 8.3 | 6.9 |
| Energy | 5.8 | 5.4 |
| Consumer Staples | 1.9 | 6.1 |
| Healthcare | 1.9 | 4.3 |
| Utilities | 1.4 | 2.0 |
| Other inc. cash & cash equivalents | 3.0 | 0.0 |
Country exposure
| Country | Portfolio (%) | Index (%) |
|---|---|---|
| China | 36.8 | 41.9 |
| Korea | 17.1 | 12.1 |
| Taiwan | 12.4 | 12.8 |
| India | 11.3 | 8.2 |
| Brazil | 3.5 | 4.6 |
| USA | 3.2 | 0.0 |
| Russia | 2.7 | 3.0 |
| Peru | 2.4 | 0.2 |
| Hong Kong | 2.2 | 0.0 |
| Indonesia | 1.8 | 1.2 |
| Hungary | 1.6 | 0.2 |
| Philippines | 0.6 | 0.7 |
| Mexico | 0.6 | 1.6 |
| Turkey | 0.5 | 0.3 |
| Malaysia | 0.2 | 1.7 |
| Other inc. cash & cash equivalents | 3.0 | 0.0 |
Source: Martin Currie as at 30 September 2020. Data shown is for the Martin Currie Global Emerging Markets representative account. MSCI Emerging Markets Index used as benchmark. Country exposure is reported by country of listing. As such, stocks offering exposure to Emerging Markets may appear under countries outside the Emerging Markets asset class. Further information is available upon request. 'Other inc. cash & cash equivalents' may include investment in an ETF for cash flow management purposes.
Risk profile
| Three years | Five Years | Seven years | |
|---|---|---|---|
| Tracking Error | 3.9 | 3.9 | 3.9 |
| Portfolio Volatility | 20.5 | 18.6 | 17.9 |
| Index Volatility | 19.2 | 17.4 | 16.8 |
| Information Ratio | 1.0 | 1.3 | 0.6 |
Past performance is not a guide to future returns.
Source: Martin Currie as at 30 September 2020. Data shown is for the Martin Currie Global Emerging Markets representative account. MSCI Emerging Markets Index used as benchmark.
Tracking error is the annualised standard deviation of the portfolio relative returns. Portfolio volatility is the annualised standard deviation of the portfolio returns. Index volatility is the annualised standard deviation of the index returns. Information ratio is the relative return of the portfolio divided by the tracking error.
Together, our capabilities form a powerful investment strategy bringing together the best opportunities in emerging markets.
How to invest
Through our parent company, Franklin Templeton, investors are offered access to a segregated account or a range of pooled vehicles.
Please contact us to discuss the most appropriate investment to meet your requirements.
How to invest
Martin Currie is a Specialist Investment Manager of Franklin Resources Inc, operating as Franklin Templeton.
Franklin Templeton is responsible for the sales and client service of our funds for financial advisers and individual investors.
If you would like to find out more about these funds, please visit the Franklin Templeton website.
Related insights
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Podcast - Quarterly update - October 2020
Paul Sloane, Portfolio Manager, reviews emerging markets in Q3 2020 and introduces a new addition to the portfolio.
- Date published
- 29 Oct 2020
- Tag
- Emerging Markets
-
Podcast: Emerging markets recovery during Q2
Andrew Mathewson, Portfolio Manager, discusses the recovery of emerging markets during Q2 and our GEMs team’s continued focus on sustainable growth.
- Date published
- 20 Aug 2020
- Tag
- Global Emerging Markets
-
Technology on the Horizon
What has the COVID-19 experience done to long term growth in the technology sector? Has it impacted 5G’s position as THE key enabling technology for the future?
- Date published
- 4 Aug 2020
- Tag
- Aftermath: Post Covid-19