“Australian investors are looking for ways to diversify away from local equity markets and invest in high-quality companies in emerging markets,” said Scott Crawshaw, a member of the Strategy’s portfolio management team.

The Emerging Markets Equity Strategy seeks long-term capital appreciation through investment in equity securities of companies operating in emerging markets countries. The Strategy is led by its Co-Lead Portfolio Managers, Rusty Johnson, CFA and Craig Shaw, CFA, who together are responsible for all investment decisions. Johnson and Shaw are supported by the three additional members of the portfolio management team, Scott Crawshaw, Pradipta Chakrabortty and Richard Schmidt, CFA.

The investment strategy is built around in-depth analysis of individual companies and the competitive dynamics of their industries. “We look forgrowing companies with sustainable competitive advantages, where management has been able to deliver returns above the cost of capital. Many of the portfolio holdings operate dominant franchises – the type of firms that typically perform ahead of their peers when the broader market indices are underperforming,” Co-Lead Portfolio Manager Rusty Johnson noted.

“The hallmark of our investment approach is to identify and invest in companies that average higher profit margins, generate greater return on assets and equity, and that carry lower debt levels.” Johnson said.

“These holdings also display faster and durable growth attributes over time in sales, earnings and cash flow. We think that if we gain insight into a company’s fundamental quality and growth, pay attention to valuations, and stick with our investment thesis over time, we will be able to generate excess returns and do so with less risk.”

According to Johnson, the Strategy’s focus on the fundamental quality of individual businesses has led to a portfolio significantly different from its benchmark, the MSCI Emerging Markets Index. “We build diversified portfolios, but we start with our company thesis first.”

Crawshaw added: “This approach has resulted in a track record that has performed very well through time, with low stock turnover, and a portfolio that tends to hold up better than the market when markets decline.” The minimum initial investment amount is AU$25,000.

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