Regional Emerging Markets Fund

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Description

Xponance’s Regional Emerging Markets Fund allows investors to efficiently invest in high quality and institutional standard investment managers that are domiciled in the country or region of their investment focus. Comprised of 7 to 12 sub-advisor funds (currently 10), the fund allows investors to benefit from each manager’s in depth understanding of local company risks and opportunities (particularly in the SMID cap segment) and to gain greater diversification within their emerging markets portfolio.

Regional Emerging Markets Manager Coverage Areas and Locations

Xponance® analysts have conducted on-site due diligence on over 187 firms in over 18 countries1 to identify high performing managers. The fund is structured to facilitate position and portfolio level monitoring by the fund manager and to achieve alignment with limited partner investors through performance-based fees based on long-term excess returns.

1 From October 2013 – February 14, 2020

*Discovered and documented firms (so far) meeting the eligibility criteria.

Investor Desired Benefits

  • Strategic positioning for where markets are anticipated to go
  • Aim to maximize active share by reducing manager correlations and reducing position overlap aims
  • Geography vs style emphasis
  • Manager allocations emphasize stock selection alpha through benchmark neutral geographic weights
  • Alignment of incentives
  • Compliance / operational oversight

Source: MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information 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. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties’”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com)

Regional Emerging Markets Manager Eligibility Criteria

  • Majority Employee Owned
  • AUM <$5B
  • Specialization within their respective region or country
  • Currently manages an investible long-only equities product

Portfolio Management

Tina Byles Williams

Chief Investment Officer & Lead Portfolio Manager

Thomas Quinn, CFA

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

Adam Choppin, CFA, APFI

Vice President, Assistant Portfolio Manager, Multi-Manager Strategies

Tracy Cao, CFA

Vice President, Team Lead Manager Research, 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.

Risk/Return

Model inception date 4/1/2014
Excess return target range (net) 3-5% relative to b/m
Realized tracking error range 6-10%
Information ratio target 0.5
Overall portfolio active share > 0.80
Benchmark MSCI Emerging Markets Net