Canada Concentrated Global Emerging Markets

Strategy Highlights

  • Stock selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach
  • Long-term thematic research targets future profitability rather than historic profitability
  • Focus on ‘compounders’ aims to allow portfolio to outperform through the market cycle

This strategy is offered by Newton Investment Management Ltd (‘NIM’). NIM is part of the Newton Investment Management Group.
Learn more about our multidimensional investment philosophy

Strategy Profile

Objective

The strategy seeks to outperform the MSCI Emerging Markets Index (NDR) by more than 3% per annum over rolling 5-year periods, by achieving long-term capital growth from a portfolio comprised predominantly of emerging-market securities.

Performance benchmark

MSCI Emerging Markets Index (NDR)

Typical number of equity holdings

40 to 70

Strategy inception

May 2011

The Newton Concentrated Global Emerging Markets strategy changed its name from Newton Global Emerging Markets strategy on January 1, 2023.

Investment Team

Our Concentrated Global Emerging Markets strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Want to find out more?

Contact us

Liliana Castillo Dearth
Liliana Castillo Dearth

Head of emerging markets and Asia equities

Alex Khosla
Alex Khosla

Portfolio manager, Emerging Markets and Asia Equities team

Zoe Kan
Zoe Kan

Portfolio manager, emerging markets and Asia equities team

Fei Chen
Fei Chen

Investment analyst

Aditya Shah
Aditya Shah

Portfolio analyst, Emerging Markets and Asia Equities team

Insights

Blog

India: Formalization and Digitalization Are Creating Opportunities

Findings from a research trip to India
May 17, 2024 Liliana Castillo Dearth
Video

Concentrated Global Emerging Markets Outlook Q2 2024

Liliana Castillo Dearth explains why interest-rate cuts and moderating inflation can provide a positive backdrop for emerging markets.
April 12, 2024 Liliana Castillo Dearth
Accessories, Bag, Text
Blog

China Trip: Three Takeaways

Three findings from a recent research trip to China.
February 26, 2024 Liliana Castillo Dearth

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Analysis of themes may vary depending on the type of security, investment rationale and investment strategy. Newton will make investment decisions that are not based on themes and may conclude that other attributes of an investment outweigh the thematic structure the security has been assigned to.

ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that material ESG analysis is assessed may vary depending on the asset class and strategy involved. As of September 2022, the equity investment team performs ESG analysis on equity securities prior to their recommendation. ESG analysis is not performed for all fixed-income securities. The portfolio managers may purchase equity securities that are not formally recommended and for which ESG analysis has not been performed.

Key Investment Risks

  • Objective/Performance Risk: There is no guarantee that the strategy will achieve its objectives.
  • Currency Risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • Geographic Concentration Risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.
  • Derivatives Risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the Strategy can lose significantly more than the amount it has invested in derivatives.
  • Emerging Markets risk: Emerging Markets have additional risks due to less-developed market practices.
  • Concentration Risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • Shanghai-Hong Kong Stock Connect and/or the Shenzhen-Hong Kong Stock Connect (‘Stock Connect’) Risk: The strategy may invest in China A shares through Stock Connect programs. These may be subject to regulatory changes and quota limitations. An operational constraint such as a suspension in trading could negatively affect the strategy’s ability to achieve its investment objective.
  • Counterparty Risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.