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Investment in the Portfolio entails certain risks. Investment returns and principal value of the Portfolio will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Some of the principal risks of investing in the Portfolio include:
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Investing primarily in stocks across emerging markets countries that offer compelling long-term return potential and attractive valuations
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Taking a long-term perspective in order to capitalize on short-term market inefficiencies created by investors’ overreaction to macroeconomic, industry, or company-specific concerns
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Employing a disciplined, bottom-up approach that combines fundamental research with proprietary quantitative tools to identify attractive investment opportunities
Portfolio Management Team
Investment Risks to Consider
These and other risks are described in the Portfolio's prospectus
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Borrowing risk: There is a risk that any income or gains made, including savings in transactions costs, in excess of interest paid and other costs of borrowing may cause the Net Asset Value (NAV) to be greater than would normally be the case. Equally, any income or gains which fail to cover the interest paid and other costs may cause the NAV to be less.
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Country risk: Where the Portfolio invests in a single country, these assets are generally smaller, more sensitive to economic and political factors, and may be less easily traded which could cause a loss to the Portfolio.
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Currency risk: Investments may be denominated in one or more currencies which are different from the Portfolio’s base currency. Currency movements in the investments may significantly affect the net asset value of the Portfolio.
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Derivatives risk: The Portfolio may include financial derivative instruments. These may be used to obtain, increase or reduce exposure to underlying assets and may create gearing; their use may result in greater fluctuations of the net asset value.
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Emerging-markets risk: Where the Portfolio invests in emerging markets, these assets are generally smaller and more sensitive to economic and political factors, and may be less easily traded, which could cause a loss to the Portfolio.
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Equity securities risk: The value of equity investments may fluctuate in response to the activities and results of individual companies or because of market and economic conditions. These investments may decline over short- or long-term periods.
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Industry/Sector risk: Investing in a limited number of issuers, industries, sectors or countries may subject the portfolio to greater volatility than one invested in a larger or more diverse array of securities.
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Liquidity risk: The risk that arises when adverse market conditions affect the ability to sell assets when necessary. Reduced liquidity may have a negative impact on the price of the assets.
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Portfolio turnover risk: A portfolio may be actively managed and turnover may, in response to market conditions, exceed 100%. A higher rate of portfolio turnover increases brokerage and other expenses. High portfolio turnover may also result in the realization of substantial net short-term capital gains, which may be taxable when distributed.
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Smaller capitalization companies risk: Investment in securities of companies with relatively small market capitalizations may be subject to more abrupt or erratic market movements because the securities are typically traded in lower volume and are subject to greater business risk.
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Taxation risk: Securities may be subject to taxation resulting from income or realised capital gains and double-tax treaties may or may not exist within the jurisdictions of these investments. In addition, applicable tax laws and interpretations thereof may change. There is a risk that withholding tax may therefore be applied by the country of residence of the issuer, which is neither refundable or subject to reduction and could adversely affect the Net Asset Value (NAV) of the Portfolio.