Emerging Markets Equity Strategy

Q2 2021 | June 30, 2021

Annualized Returns (%) 

QTD YTD 1 Year 3 Years 5 Years 10 Years Since Inception1
Gross of fees 9.68 9.91 48.69 13.96 12.16 4.73 8.69
Net of fees 9.41 9.37 47.26 12.83 11.06 3.69 7.62
Benchmark 5.05 7.45 40.90 11.27 13.03 4.28 7.55
1 Inception Date: July 1, 2009 2 Benchmark: MSCI Emerging Markets Net

Characteristics

Portfolio Weight
Excess return (gross since inception) 1.15%
Excess return (net since inception) 0.07%
Tracking error 4.43%
Standard deviation (annualized) 17.95%
Information ratio (gross since inception) 0.26
Information ratio (net since inception) 0.02
Upside capture (3 yr) 120.67%
Downside capture (3 yr) 105.46%
Weighted average market cap $72,323.03mm
Weighted average market cap (benchmark) $165,675.02mm

Sector Weights (%)

Portfolio Weight Benchmark Weight

Communication Services 13.84 11.26
Consumer Discretionary 27.46 17.58
Consumer Staples 21.51 5.62
Energy 0.18 5.03
Financials 20.48 17.78
Health Care 3.67 5.04
Industrials 4.14 4.90
Information Technology 3.12 20.41
Materials 2.94 8.42
Real Estate 2.60 2.01
Utilities 0.06 1.95

Top Ten Holdings (%)

Portfolio Weight
Sea Ltd. (Singapore) Sponsored ADR Class A 5.92
Li Ning Company Limited 5.45
Banco Inter SA Units Cons of 1 Sh + 2 Pfd Shs 4.20
Tencent Holdings Ltd. 3.89
Apollo Hospitals Enterprise Limited 3.56
Meituan Class B 3.54
HDFC Bank Limited 3.30
Dino Polska S.A. 3.20
East Money Information Co., Ltd Class A 3.06
Bilibili, Inc. Class Z 2.84

Region Weights (%)

Portfolio Weight
Pacific Rim 52.16
South Asia 35.94
LatAm 8.11
Europe Periphery 3.20
Cash 0.58
Total product assets shown above may include accounts that are not reflected in the GIPS® report below. Portfolio characteristics are subject to change, and current holdings may differ. Past performance is not an indication of future results. GIPS-compliant performance information for the firm’s strategies and products are available upon request at info@xponance.com. A GIPS report is found at the end of this presentation. Statistics shown above are supplemental information to the GIPS report at the end of this presentation. Results represent preliminary data which is subject to change. For further performance data, please see the Xponance® Emerging Markets Equity Strategy disclosures below.

Portfolio Management

Tina Byles Williams

Chief Investment Officer & Lead Portfolio Manager

Thomas Quinn, CFA

Managing Director, Sr. Portfolio Manager, Tactical & Multi-Manager Strategies

About Xponance®

Xponance® is a multistrategy investment firm offering strategies across equity and fixed income. We are independent and employee owned by women and diverse professionals, whose common passion is to do the right thing for our clients and each other. Xponance® is the successor firm representing the integration of two great legacy firms, FIS Group, Inc. and Piedmont Investment Advisors, LLC

Investment Philosophy

We believe that a carefully constructed portfolio of small, entrepreneurial managers can outperform its benchmark and large AUM peers on a risk adjusted basis over a full market cycle, without taking on uncompensated levels of active risk. This strategy is defined by exposure to undiscovered, high conviction non-U.S. equity managers, who we
are delivering to clients in customizable solutions.

Portfolio Facts

Inception date 07/1/2009
Assets in strategy $354mm
Woman or diverse owned managers 40-60%
Target active share >70
Benchmark MSCI Emerging Markets Net
Min. investment $25mm
Vehicle(s) available Separately managed

Annualized Disclosure Presentation

Annualized Performance Results (%) 3-Yr Annualized Ex-Post Standard Deviation (%)
Year End Composite Gross TWR Composite Net TWR Benchmark1 Composite Gross Benchmark1 Number of Portfolios Internal Dispersion (%) Composite Assets ($mm) Total Firm Assets ($mm)
2020 24.24 23.02 18.31 20.56 19.60 7 6.74 786 12,493
2019 21.36 20.17 18.42 13.78 14.17 9 2.55 748 4,621
2018 -16.37 -17.21 -14.57 13.68 14.60 12 0.63 721 4,868
2017 29.89 28.63 37.28 13.24 15.35 11 2.52 434 5,103
2016 1.10 0.09 11.19 13.47 16.07 11 1.93 256 4,695
2015 -12.16 -13.04 -14.92 12.07 14.06 8 2.40 123 4,475
2014 2.27 1.26 -2.19 13.53 15.00 8 N/A 182 4,527
2013 -1.34 -2.32 -2.60 19.11 19.04 6 N/A 172 4,368
2012 18.23 17.06 18.22 22.51 21.50 5 or Fewer N/A 79 2,710
2011 -15.33 -16.18 -18.42 N/A N/A 5 or Fewer N/A 62 2,351
Composite inception date: June 30, 2009. 1 Benchmark: MSCI Emerging Markets Net

Xponance,® Inc. (“Xponance®”) claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Xponance® has been independently verified for the periods from November 1, 1998 through December 31, 2020. The verification report is available upon request.

A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report.

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.

On August 31, 2018, FIS Group, Inc. (“FIS Group”) acquired Piedmont Investment Advisors, Inc.’s (“PIA”) predecessor, Piedmont Investment Advisors, LLC. Xponance®, Inc. (“Xponance®”) is an independent, registered investment adviser and is the successor registrant under the Investment Advisers Act of 1940 (the “Advisers Act”) to both FIS Group and its wholly-owned subsidiary, PIA. Pursuant to a corporate rebranding and consolidation strategy, Xponance® was established effective April 1, 2020, to leverage the long histories of its predecessor entities in providing customized investment management products to institutional clients. FIS Group (through its former subsidiaries, Fiduciary Investment Solutions, Inc. and FIS Funds Management, Inc.) managed assets since 1996 and PIA (through its former affiliate Piedmont Investment Advisors, LLC) began managing assets in 2000. The firm maintains a list of composite descriptions and limited pool fund(s) descriptions, which is available upon request.

Total firm assets presented through, and including, Calendar Year 2019 represent total firm asset for FIS Group as, prior to April 1, 2020, this composite was managed by legacy firm FIS Group. Total firm assets presented for periods after April 1, 2020 represent the total firm assets of Xponance®.

Xponance® Emerging Markets Equity Strategy is an emerging markets equity composite which contains fully discretionary emerging markets equity account(s) that are constructed by using the manager of managers concept and, beginning February 1, 2018, may or may not have applied a tactical completion account to implement Xponance’s top down views, including the ability to amplify or reduce overall market beta risk, based on our risk indicators, more nimbly and more efficiently. Accounts that are no longer with the firm are included through the last full measurement period such accounts were managed in the composite’s style. For comparison purposes this composite is measured against the MSCI Emerging Markets net Index. Since the performance inception of the composite, sub-advisor(s) have been utilized to manage assets within the Xponance® Emerging Markets Equity Strategy. For periods prior to January 1, 2010, cash was managed separately for all carve-outs. For calendar year 2010, the composite was made up of 100% carve-outs. The Xponance® Emerging Markets Equity Strategy composite was created November 6, 2013.

Past performance is not indicative of future results. The US Dollar is the currency used to express performance. Returns include the effect of foreign currency exchange rates. Sources of foreign exchange rates may be different among the portfolios within a composite, and between the composite and the benchmark. Composite performance is presented net of foreign withholding taxes on dividends, interest income, and capital gains. The actual tax rate applied may vary by custodian and the investor’s domicile. MSCI uses the maximum withholding tax rate applicable to institutional investors in calculating MSCI net dividends.

Gross of fee performance results are presented gross of management fees and include the reinvestment of all income. Net of fee performance results reflect a model annual management fee of 1.00%. Net returns are calculated by deducting the model management fee from the monthly gross composite return. Actual management fees incurred by clients may vary. Xponance® uses the following asset-based standard fee schedule: 1.00% for the first $10 million, 0.90% for the next $15 million, 0.85% for the next $25 million, 0.80% for the next $25 million, 0.70% for the next $25 million, negotiable thereafter. As reflected in the FIS Group Emerging Markets Collective Investment Trust Offering Memorandum, the maximum annual management fee is 0.85%. The total expense ratios for FIS Tactical Completion Fund: 0.17%, FIS Group at a Reasonable Price I: 0.20%, FIS Group Quality Growth I: 0.20%, FIS Group Quality Value I: 0.20%, FIS Group Relative Value I: 0.20% as of the Fund’s most recent fiscal year end (June 30, 2020). Policies for valuing portfolios, calculating investments, and preparing GIPS reports are available upon request.

The three-year annualized standard deviation measures the variability of the composite gross returns and the benchmark returns over the preceding 36-month period.

Internal dispersion is calculated using the equal-weighted standard deviation of annual gross of fee returns of those portfolios that were included in the composite for the entire year. For those years when less than six portfolios were included in the composite for the full year, no dispersion measure is presented.