Global Emerging Market Equities Strategy is our flagship strategy with a 20-year GIPS compliant track record. For the Emerging Market Equities strategy, the objective is to arrive at country, sector and currency allocations so as to outperform the MSCI Emerging Markets Total Return (Net Dividends) Index over a market cycle.
Our strategy aims to exploit inefficiencies in the pricing of global macro variables and valuation of out-of-favor sector and country indices. Our investment protocol seeks to identify deep value plays within the EM universe, accounting for the primary role exerted by currency valuation and economic growth. Economic growth, impacted not only by domestic but also global macro factors, is a principal driver of corporate earnings growth. Currency dynamics also exert a material role in corporate earnings via their differential impact on cross-country and cross-sector relative return performance dynamics.
In today’s environment, global markets are driven increasingly by economic policy decisions aimed at averting crisis while dealing with systemic and secular challenges, including demographics, technological innovation and geopolitical dynamics. We are witnessing this not only in Emerging Markets, but also increasingly in several of the world’s key developed regions. The day-to-day volatility of markets underscores this reality. Our portfolio managers and other investment team members avail themselves of long periods of experience and training so as to monitor such global trends. In doing so, the investment team manages portfolios so as to capture alpha generating opportunities tied to the fluid and fast-changing nature of global market dynamics.
Glovista follows a discretionary (as opposed to systematic) global macro approach to investments. We believe that active portfolio management, run by a team of qualified dedicated professionals, best serves our clients. We believe that even though financial models are very helpful in synthesizing vast amounts of data, no financial model can capture the complexity and fast changing dynamics of global markets. This is pertinent at Glovista when considering the experience and pedigree of our CIO and Investment Team which has over 120 years of total investment experience across asset classes. We use models to help distill macro information as we search for value plays at the country and sector levels. The final portfolio allocation decision is discretionary, drawing on decades of experience of our investment team in global markets.
The strategy is implemented entirely using large liquid US-listed country & sector ETFs and ADRs. The strategy is a pure long-only strategy that does not utilize any shorting or leverage (explicit or implicit).
Our Emerging Market Equities Strategy is also offered on the SMA platforms of Lockwood & TD Ameritrade (single contract) as well as Morgan Stanley Smith Barney, Wells Fargo, UBS, RBC and Charles Schwab (dual contract).