Emerging Markets Equity
Trailing Returns: Emerging Markets Equity Composite
Calendar Year Returns
All results portrayed are expressed in U.S. dollars. Periods under one year are not annualized.
Past performance is not necessarily indicative of future results. For full disclosure and for further information regarding comparison to an index, see the Disclaimer and Performance Disclosure.
The index comparisons in this presentation are provided for informational purposes only and should not be used as the basis for making an investment decision. Further, the performance of the composite and the Index may not be comparable. There are significant differences between the composite and the indices referenced, including, but not limited to, risk profile, liquidity, volatility and asset composition. Please note that an investor cannot invest directly in an index.
There can be no assurance that investment objectives will be achieved. Clients must be prepared to bear risk of a total loss of their investment.
Due to a varying frequency of the fees being paid and associated compounding effects, the actual difference between gross and net returns may differ from the stated annual fee. For example, on an account with a 0.50% fee, continuous monthly gross performance of 1.50% and the fees being deducted monthly, the compounding effect will result in an annual gross return of 19.56% and a net return of 18.97%. Thus, a $10,000 initial investment would grow to approximately $14,295 gross of fees, versus $14,155 net of fees, over a two-year period. Effective January 2016, the net-of-fees rates of return are calculated based on the fee schedule. All net returns that were previously calculated on a cash basis are linked to the returns being calculated under the new methodology, reflecting daily accrual of fees.
Vontobel Asset Management, Inc. (“Vontobel”) is registered with the U.S. Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended, in the USA. Registration as an Investment Advisor with the U.S. Securities and Exchange Commission does not imply a certain level of skill or expertise. Vontobel is exempt from the requirements to hold an Australian Financial Services License under the Corporations Act in respect of the financial services it provides to Australian wholesale clients under ASIC Class Order CO 03/1100. Vontobel is regulated by the US Securities and Exchange Commission under US laws, which differ from Australian laws.
Emerging Markets Equity Performance
As of December 31, 2017
|Total Return1||Composite Characteristics at End of Period||External Standard Deviation2|
|Period||Gross of Fee
|Net of Fee
|Gross of Fee
|Net of Fee
1Total returns are expressed in USD.
23-year annualized standard deviation based on monthly returns.
3The measure of internal dispersion presented is an asset-weighted standard deviation based on gross of fee returns, and is calculated if the composite contains greater than five portfolios for the full year.
Vontobel Asset Management, Inc. (“Vontobel“) is an investment advisory firm registered with the Securities and Exchange Commission, under the Investment Advisers Act of 1940, as amended, and a subsidiary of Vontobel Holding AG, Zurich, Switzerland. For GIPS purposes, the firm is defined as all institutional accounts at Vontobel, excluding wrap accounts and private client assets managed in previous years.
Vontobel claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Vontobel has been independently verified for the periods from January 1, 2001 through December 31, 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Emerging Markets Equity composite has been examined for the periods from January 1, 1994 through December 31, 2017. The verification and performance examination reports are available upon request.
The Emerging Markets Equity Composite includes all discretionary accounts that invest mainly in equity securities of issuers located in emerging market countries in Asia, Latin America, Africa and Europe. The minimum account size for this composite is $1 million. The composite was created on October 31, 1992. The firm maintains a complete list and description of composites, which is available upon request. The U.S. Dollar is the currency used to express performance. Policies for valuing portfolios, calculating performance and preparing compliant presentations are available upon request.
Results of the composite are shown compared to the Morgan Stanley Capital International Emerging Markets Index (the “MSCI Emerging Markets Index”), an unmanaged index based on share prices of a select group of global emerging market stocks that are available to global investors. The benchmark is used for comparative purposes only and generally reflects the risk or investment style of the investments in the composite. The index is a free float-adjusted market capitalization index of approximately 830 stocks that is designed to measure equity market performance in 24 emerging markets countries. The index is calculated on a total return basis with net dividends reinvested. It reflects withholding taxes, but not fees and other investment expenses, and is expressed in U.S. Dollars. Investments made by Vontobel for the portfolios it manages according to respective strategies may differ significantly in terms of security holdings, industry weightings and asset allocation from those of the MSCI Emerging Markets Index. The index has not been examined by an independent verifier. On January 1, 2015, the benchmark was retroactively changed from the MSCI Emerging Markets Index GD (with gross dividends reinvested) to the MSCI Emerging Markets Index ND (with net dividends reinvested). The benchmark was changed to provide a closer representative comparison versus the composite with respect to the way withholding taxes are captured.
Net composite performance is presented after the deduction of foreign withholding taxes. Capital gains, dividends and interest income received may be subject to withholding taxes imposed by the country of origin and such taxes may not be recoverable. Returns include the effect of foreign currency exchange rates. Returns are presented gross and net of management fees and include the reinvestment of all income. The gross rates of return are presented before the deduction of investment management fees and other investment-related fees, and after the deduction of foreign withholding taxes, brokerage commissions and transaction costs. The net rates of return are presented after the deduction of investment management fees, brokerage commissions, transaction costs, other investment-related fees, foreign withholding taxes and bundled fees. Such investment management fees are actual fees. Effective January 2016, the net returns reflect daily accruing of fees based on each account’s fee schedule. Prior to 2016, the net returns were calculated using actual fees recorded on a cash basis. Starting in 2012, the net rates of return are also reflective of performance fees. Previously, the net returns did not contain any performance-based fee components. Derivatives in the form of forward foreign currency contracts were used in managing client portfolios for opportunistic currency hedging until October 2011. The standard annual management fees charged by Vontobel for the Composite are: 0.95% on the first $100 million, 0.85% over $100 million. Certain accounts may have higher management fees than the standard fee schedule and performance-based fees may be charged. Investment advisory fees are further described in Part 2 of its Form ADV.
As of March 7, 2016, Mr. Matthew Benkendorf took over the management of the Vontobel Emerging Markets Equity Strategy. There are no changes to the composite strategy as a result of the management change.
Past performance is not indicative of future results.