We believe that companies driven by domestic demand and local consumer trends represent the future of emerging markets and global economic growth. The Strategy allows investors access to these unique growth opportunities, which may not be captured in their existing portfolios otherwise.
Our active investment process, predicated on bottom-up stock selection, allows us to identify growth opportunities that are often poorly captured by many active emerging markets strategies, as well as widely used market indices.
Learn more about our Active Emerging Markets Solution vs. Passive Investing and its fit within an investor’s total portfolio allocation framework.
Demographics, technology and the aspirations of a rising middle class have transformed emerging markets, creating new opportunities to invest in structural growth companies that will be the future of emerging markets economies.
Look inside our portfolio companies and their structural growth themes.
Alibaba is a leading Chinese e-commerce, cloud computing, digital media, entertainment and innovation company.
Sector: Consumer Discretionary
Country: China
Structural Growth Thesis:
BTPS is a micro-lending company that is empowering rural impoverished women in Indonesia.
Sector: Financials
Country: Indonesia
Structural Growth Thesis:
A-Living is a top 10 property manager in China that primarily manages residential estates, charging fees for communal property management and for value-added services.
Sector: Industrials
Country: China
Structural Growth Thesis:
CHG is a leading private hospital group in Egypt that aims to enhance the quality and accessibility of health care in the country.
Sector: Health Care
Country: Egypt
Structural Growth Thesis:
Ping An is one of the world’s largest financial institutions and China’s second largest insurance company with businesses spanning across life insurance, casualty business and banking.
Sector: Financials
Country: China
Structural Growth Thesis:
VanEck has been investing internationally since opening its doors in 1955, and emerging markets have been at its core for over 28 years. Since its inception, our Emerging Markets Equity Strategy has been governed by its time-tested investment philosophy, process and approach to stock selection and offers a unique perspective to investing in emerging markets today.
The Emerging Markets Equity Strategy is truly an all cap portfolio with no market capitalization bias, allowing access to entrepreneurial ownership in growing sectors within emerging markets countries.
Source: FactSet. Data as of June 30, 2021. Information regarding portfolio composition, portfolio composition methodology, investment process or limits, or valuation methods of evaluating companies and markets are intended as guidelines which may be modified or changed by VanEck at any time in its sole discretion without notice.
The ongoing change in composition within each sector means that today’s domestic demand, consumer driven growth companies operate across sectors. Within the Financials sector, for example, growth opportunities exist in Micro Finance, Insurance and high quality Consumer Banking space. The Strategy’s sector exposures are a by-product of the bottom-up investment process.
Source: FactSet. Data as of June 30, 2021. Information regarding portfolio composition, portfolio composition methodology, investment process or limits, or valuation methods of evaluating companies and markets are intended as guidelines which may be modified or changed by VanEck at any time in its sole discretion without notice.
Structural growth companies with domestic demand, consumer led themes tend to concentrate in certain countries; therefore, the Strategy tends to be overweight in those places (i.e., China, India, Brazil, etc.), given its bottom-up investment approach.
Source: FactSet. Data as of September 30, 2021. Information regarding portfolio composition, portfolio composition methodology, investment process or limits, or valuation methods of evaluating companies and markets are intended as guidelines which may be modified or changed by VanEck at any time in its sole discretion without notice.
Using Morningstar’s proprietary discounted cash flow model, the analyst develops a Fair Value Estimate, which represents the intrinsic value of that company.
Identify companies with sustainable competitive advantages and attractive valuations.
With an impressive performance track record, the Emerging Markets Equity Strategy has proven its ability to navigate the complexities of emerging markets over multiple business cycles and continues to provide true growth exposure to our investors today.
Source: eVestment. Data as of June 30, 2021. Past performance does not guarantee future results.
We believe an experienced Investment Team actively investing in visible and persistent growth with a disciplined valuation approach will deliver alpha to our clients through business cycles.
The Strategy is led by Portfolio Manager David Semple who has over 31 years of dedicated emerging markets investment experience. David has been at VanEck since 1998 and has run the Strategy since its inception in 2002.
The Portfolio Manager is supported by a deeply experienced team of career emerging markets analysts, who are dedicated solely to this Strategy.
For more information on our Investment Team, please click here.
The Investment Team also benefits from access to research resources available across VanEck’s broader organizational platform. This includes rigorous on-the-ground research and due diligence, including firsthand interaction with company managements, which takes our investment teams around the globe.
Using Morningstar’s proprietary discounted cash flow model, the analyst develops a Fair Value Estimate, which represents the intrinsic value of that company.
Identify companies with sustainable competitive advantages and attractive valuations.
Important Disclosures
Structural growth refers to growth that is derived from sound business models with strong fundamentals, as well as visible and persistent earnings potential.
This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the securities mentioned herein. Fund holdings will vary.
The reader should not assume that an investment in the securities identified was or will be profitable.
This content is published in the United States for residents of specified countries. Investors are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this content. Nothing in this content should be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction, nor is it intended as investment, tax, financial, or legal advice. Investors should seek such professional advice for their particular situation and jurisdiction.
This is not an offer to buy or sell, or a solicitation of any offer to buy or sell any of the securities mentioned herein. The Fund(s) may or may not own the securities and, if such securities are owned, no representation is being made that such securities will continue to be held. Holdings will vary for the Fund(s) and their corresponding Indices. For a complete list of holdings, please click here.
The MSCI Emerging Markets Investment Market Index (MSCI EM IMI) is a free float-adjusted market capitalization index that is designed to capture large, mid- and small-cap representation across emerging markets countries. The Morgan Stanley Capital International (MSCI) Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI benchmarks are Gross Return indices which reinvest as much as possible of a company’s gross dividend distributions.
Index returns are not Fund returns and do not reflect any management fees or brokerage expenses. Index returns assume that dividends have been reinvested. An index’s performance is not illustrative of the Fund’s performance. Indices are not securities in which investments can be made.
The views and opinions expressed are those of VanEck. Fund manager commentaries are general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Any discussion of specific securities mentioned in the commentaries is neither an offer to sell nor a solicitation to buy these securities. Fund holdings will vary.
You can lose money by investing in the Fund. Any investment in the Fund should be part of an overall investment program, not a complete program. The Fund is subject to the risks associated with its investments in Chinese issuers, communication services sectors, direct investments, emerging market securities which tends to be more volatile and less liquid than securities traded in developed countries, foreign currency transactions, foreign securities, other investment companies, Stock Connect, management, market, operational, sectors and small- and medium-capitalization companies risks . The Fund’s investments in foreign securities involve risks related to adverse political and economic developments unique to a country or a region, currency fluctuations or controls, and the possibility of arbitrary action by foreign governments, or political, economic or social instability. Please see the prospectus and summary prospectus for information on these and other risk considerations.
Investing involves substantial risk and high volatility, including possible loss of principal. An investor should consider a Fund’s investment objective, risks, charges and expenses carefully before investing. To obtain a prospectus and summary prospectus for VanEck Funds and VanEck ETFs, which contain this and other information, call 800.826.2333 or visit vaneck.com. Please read the prospectus and summary prospectus for VanEck Funds and VanEck ETFs carefully before investing.
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800.826.2333