The emerging markets asset class experienced a challenging quarter as negative news flow seemed to follow its largest component, China.
INVESTMENT CAPABILITIES
China Concentrated Equity
This strategy invests in publicly traded companies based in China. The portfolio holds a maximum of 25 companies, and clients typically benchmark the strategy to the MSCI China Index.
Why Mondrian for Emerging Markets Equities?
We are a value-oriented defensive manager – we invest in stocks where rigorous dividend discount analysis isolates value in terms of the long-term flow of dividends.
- Mondrian is an independent, employee-owned asset manager; approximately half of employees are partners today
- Dedicated Emerging Markets Equity team of eight
- Mondrian adopts a high-conviction, long-term, defensive investment approach with a clear valuation discipline
- Mondrian emphasizes companies with sustainable free cash flow generation, strong balance sheets, and value accretive capital allocation. The strategy is driven by in-depth proprietary research with regular company meetings
- Mondrian uses a consistent long-term valuation discipline ensuring we avoid the irrationality that can exist in a volatile space such as Emerging Markets
- In a more challenging market environment, particularly when markets are falling, Mondrian would expect to protect portfolios better given the resilience and strength of our companies, while not sacrificing long-term upside capture
- Mondrian uses a Dividend Discount Methodology to value securities, focusing on attractive long-term fundamentals and future real growth in earnings, cash flow and dividends
- Mondrian looks for companies with strong competitive advantages or sustainable moats at low risk of technological disruption or ESG risks. This investment process has been implemented since 1996
Performance
As of September 30, 2021
Annualized
Calendar Year
Mondrian China Concentrated Equity Composite (USD)
Inception date: January 1, 2019Â
Index returns are shown with net dividends reinvested.
Past performance is not a guide to future performance. The value of investments and income from then can fall as well as rise and investors may not get back the original amount invested. Performance results marked “Gross” do not reflect deduction of investment advisory fees but are net of transaction costs and withholding tax. Investment returns will be reduced accordingly. Performance returns marked “Net” reflect deduction of investment advisory fees and are calculated by deducting a quarterly indicative fee from the quarterly composite return. Please see important information below.
Periods over 12 months are annualized.Â
Mondrian Investment Partners Limited (“Mondrian”) claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. A GIPS Composite Report is available on request from mondrian.website@mondrian.com.
This introductory material is for informational purposes only and is not an offer or solicitation with respect to any securities. Any offer of securities can only be made by written offering materials, which are available solely upon request, on an exclusively private basis and only to qualified financially sophisticated investors residing in jurisdictions consistent with Mondrian’s regulatory authorizations. The information set forth herein is a summary only and does not set forth all of the risks associated with the investment strategy described herein. Â
Views expressed were current as of the date indicated, are subject to change, and may not reflect current views. Views should not be considered a recommendation to buy, hold or sell any security and should not be relied on as research or investment advice.
These materials may include forward-looking statements. All statements other than statements of historical facts are forward-looking statements (including words such as “believe,” “estimate,” “anticipate,” “may,” “will,” “should,” “expect”). Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Various factors could cause actual results or performance to differ materially from those reflected in such forward-looking statements.
Calculations for P/E, P/B, dividend yield, sector country allocations, market caps, yield to maturity, modified duration, average maturity, average quality and country allocations are based on generally accepted industry standards. All characteristics are based on a representative account and derived by first calculating the characteristics for each security, and then calculating the weighted average of these values. The details of exact calculations can be provided upon request. All characteristic data provided is produced using Mondrian’s accounting system data.
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There can be no assurance that the investment objectives of the strategy will be achieved.
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MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indexes or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.
As of September 30, 2021
Characteristics
Sector Allocation
Country Allocation
Top 10
| Characteristic | ||
|---|---|---|
| P/E (trailing 12 months) | ||
| P/B (trailing 12 months) | ||
| Price/Cash Flow | ||
| Dividend Yield (%) | ||
| Number of Holdings | ||
| Weighted Average Market Cap (million, USD) | ||
| Median Market Cap (million, USD) | ||
| Information Ratio (3 years) |
Source: Mondrian Investment Partners/MSCI
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© 2021 Mondrian Investment Partners Limited is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 149507.
All information is as of June 30, 2021 unless otherwise noted.