INVESTMENT CAPABILITIES

Emerging Markets Small Cap

This strategy invests in emerging market securities of approximately USD 1.75 billion or less in market capitalization. The portfolio ranges from 70 to 150 companies, and clients typically benchmark the strategy to the MSCI Emerging Markets Small Cap Index.

Why Mondrian for Emerging Market Small Cap Equities?

Performance

As of September 30, 2020

Mondrian Emerging Markets Small Cap Equity Composite (USD)

Inception date: January 1, 1998
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. 

Portfolio

As of September 30, 2020

Characteristic
Mondrian
MSCI Emerging Markets Small Cap Index
P/E (trailing 12 months)
23.7
24.4
P/B (trailing 12 months)
3
1.3
Price/Cash Flow
14.3
9.5
Dividend Yield (%)
2
2.5
Number of Holdings
90
1,555
Weighted Average Market Cap (million, USD)
1,988
1,325
Median Market Cap (million, USD)
1,177
752
Information Ratio (3 years)
0.54
-
Source: Mondrian Investment Partners/MSCI
Click here for important additional disclosure details of this composite.

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.  
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.
There can be no assurance that the investment objectives of the strategy will be achieved.
 
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.
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News and Insights

Green Bonds

As green bonds continue to rise in issuance, investors are taking a closer look at this asset class. Sarah Mitchell, Portfolio Manager on Mondrian’s Global Fixed Income and Currency investment team, talks with Bond Buyer about the asset class. 

A green bond is one whose proceeds are directed exclusively to financing projects that have a positive environmental impact. However there is still no one widely accepted definition of what constitutes green.

The past decade has been a challenging period for value investors: record low interest rates and structural changes in the economy have caused investors to shun value stocks in favor of growth stocks.

Clive Gillmore, CEO and Group CIO at Mondrian Investment Partners, discusses the international markets and global equities. Hosted by Paul Sweeney and Vonnie Quinn.

Halfway through 2020, the world remains in the grip of a global pandemic, an economic shock of unprecedented scope and …

Mondrian Investment Partners today announced the launch of the Mondrian Global Equity Value Fund (MPGVX), expanding Mondrian’s diverse line-up by offering investors the opportunity to identify value across the world.

Growth-oriented investments in equity markets have significantly outperformed value since the financial crisis.

Mondrian Investment Partners is pleased to announce a reduction in the management fee for Mondrian International Value Equity Fund (MPIEX) and changes to the Fund’s contractual expense limit.

Mondrian Investment Partners is pleased to announce the launch of a Global Equity ESG strategy that utilizes the same successful philosophy as our flagship Global Equity strategies as managed by Mondrian’s Global Equity team.

Managed appropriately, high quality global developed market fixed income offers investors enhanced yield, downside protection and diversification beyond their home market.

This paper sets out the relevance of international small cap investment in a post Covid-19 world.

Mondrian’s CEO/Group CIO, Clive Gillmore, was one of three featured presenters on P&I’s Managing Volatility Amid the Coronavirus webinar in early May. The panelists discussed the recent spike in the markets and economic volatility, what investors might expect for the long term and the implications of corporate bailouts for investors.

As featured recently in Fin daily, “Asset Managers Have Clashing Views On Coronavirus Severity: Webinar,” Clive Gillmore, Group CIO and CEO of Mondrian, provided insight and perspective on the international investment landscape and the coronavirus.

As featured in Pensions & Investments, Mondrian’s Brendan Baker, Senior Portfolio Manager on the U.S. Small Cap Equities team, shares his thoughts on why the low interest rate environment has resulted in more loss-making within U.S. small-cap companies.

Mondrian Investment Partners Limited is pleased to announce that Morningstar has awarded the Mondrian International Value Equity Fund a Morningstar Analyst Rating of Silver and maintains its 4-star Overall rating as of December 31, 2019.

After the MSCI Emerging Markets Index (“Index”) fell 15% in 2018, the Index bounced back in 2019 posting an 18.4% rise.

Twelve months ago, most market observers assumed that further economic recovery and the threat of modestly higher inflation would prompt further tightening from central banks on a path to post-crisis monetary normalization.

The US dollar is extremely overvalued and if history is any guide it is poised for a substantial multi-year fall. According to our Purchasing Power Parity (PPP) valuations, it is now overvalued against every major currency in the world.

Rather than use ESG in isolation as a screening tool, Mondrian believes it is better used as a risk factor which can be priced along with other credit risk factors and demand a higher return on capital to compensate us for additional ESG risk.

Mondrian’s international team since 2014, replaced Platt as comanager on the fund. The managers combine in-depth research of individual companies with top-down evaluations of country factors and currency levels.

Ginny Chong, Senior Portfolio Manager at Mondrian was recently interviewed by Chief Investment Officer magazine in the article “Is China Unstoppable?” Ms. Chong commented on the extent that the authoritarian Chinese government is an inhibiting force to innovative thinking.

Nigel Bliss, Senior Portfolio Manager at Mondrian Investment Partners recently spoke with PlanAdvisor on opportunities in international investing.

Despite double-digit gains for the MSCI World index, geopolitical gloom, notably trade wars and Brexit, hangs over investors, economies and the share prices of more economically-sensitive companies.

Listen to Clive Gillmore, CEO and Group CIO of Mondrian Investment Partners, on Bloomberg Radio discuss why U.S. investors should be looking at international equities.

Value has somewhat different meanings depending on one’s specific interpretation. We thought it would be interesting to further expand, and give our explanation of Mondrian’s emerging market portfolio value credentials by looking through a few different lenses.

Amidst increasing concern over deteriorating economic growth, geo-political uncertainty and the prospects of tightening monetary policy, global equity and credit markets threw a temper tantrum towards the end of 2018. 

As a value manager, Mondrian Investment Partners has always believed in conducting analysis that captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our investment process.

Clive Gillmore, Group CIO and CEO recently joined a panel of experts to discuss geographical opportunities, long term ESG potential, and the impact of trade wars on global markets.

As a long-term value manager Mondrian Investment Partners has always believed in carrying out analysis which captures all potential material risks and opportunities; understanding and integrating the impacts of ESG factors has therefore consistently been part of our long-term modeling.

At the African National Congress (ANC) election in December 2017, Cyril Ramaphosa was elected as the new leader of the party, replacing the ineffective and corrupt incumbent Jacob Zuma. Pure relief at a change of leader led to such exuberance in financial markets that the phrase ‘Ramaphoria’ was coined.

Over the past couple of decades, Emerging Markets Debt (EMD) has matured into a large, diverse and growing asset class. We believe not only is the case for a long term strategic allocation to EMD compelling but the tactical case, given current valuations, suggests that the time is now ripe for entry.

Mondrian International Equity has a solid approach and the right team in place to execute it. The fund earns a Morningstar Analyst Rating of Bronze.

Mondrian Investment Partners Limited announced the launch of the Mondrian U.S. Small Cap Equity Fund, an active value-oriented defensive strategy.

We are pleased to announce the reorganizations of the Laudus Mondrian International Equity Fund (LIEIX), Laudus Mondrian Emerging Markets Fund (LEMNX) and the Laudus Mondrian International Government Fixed Income Fund (LIFNX) effective September 24, 2018.

As a result of our thorough bottom-up analysis and incorporating all a variety of factors into our long-term dividend discount valuation, we concluded the stock was significantly undervalued with an attractive skew of returns and a reasonable worst case scenario.

Mondrian International Equity has a solid strategy, experienced managers and analysts, and a committed parent. It receives a Morningstar Analyst Rating of Bronze.

Nearly a decade into an economic recovery marked by low yields and stock market volatility, wary investors are still struggling with where to allocate portfolio assets for stable, long-term returns.

Since the US stock market has outperformed international equities for nearly a decade, some investors may falsely believe that owning non-US stocks no longer offers the performance-enhancing advantage it once did.

Investors tend to overpay for growth when interest rates are held artificially low and monetary policy floods the markets with liquidity.

Mondrian Investment Partners Limited announced the reorganization of the Delaware Pooled Trust International Equity Fund (DPIEX) into the Mondrian International Equity Fund.

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© 2020 Mondrian Investment Partners Limited is authorised and regulated by the Financial Conduct Authority – Firm Reference Number 149507.
All information is as of September 30, 2020 unless otherwise noted.

North American Investors

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Radnor, PA 19087 
United States

Non-North American Investors

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United Kingdom

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