Emerging Markets Equity Strategy

Investment Strategies

Be at the Forefront of Opportunity

  • Diversification Benefits — Given their broad range of economic environments, currencies and political systems, we believe emerging markets offer a compelling diversification alternative to U.S. and international markets.
  • Future Economic Growth — Since 1980, emerging-market growth has generally outpaced that of developed markets, and this is forecasted to continue.1
  • Potentially Underutilized Opportunity — Despite their growing significance in the global investing arena, we believe emerging-market equities have been under-allocated within well-diversified portfolios.

Expand Your Exposure with Confidence

  • Value Opportunities — Contrary to perception, value stocks (i.e., those with low price-to-book ratios) have outperformed growth stocks (i.e., those with higher price-to-book ratios) over the long term in emerging markets.2
  • Experience — Brandes is one of the pioneers in emerging- markets value investing, pursuing opportunities in EM for over 30 years as a firm and over 20 years with a standalone strategy.
  • Active, Company Focused Approach — Our focus on individual companies that may be mispriced helps us take advantage of long-term value opportunities in the diverse and expanding emerging markets arena.
  • All Capitalization Mandate — With over 5,000 emerging- market companies to choose from, we believe our ability to move up and down the market-cap spectrum in search of value is key to enhancing return potential.
  • Flexibility to Invest Off-Index — We have the flexibility to invest in companies that are located in markets not included the MSCI Emerging Markets Index, such as those in frontier markets and developed-market companies with significant economic exposure to emerging markets.

Partner with a Pioneer in Emerging Markets Value Investing

  • Experienced Professionals — The Investment Team is composed of experienced professionals who have navigated many market cycles.
  • Commitment to Transparent, Easy to Understand Investment Process — The firm consistently applies a Graham-and-Dodd, value-investing approach centered on a research-driven process of purchasing potentially undervalued companies with the goal of capturing future price appreciation.
  • Independent Point of View — Brandes Investment Partners is a 100% employee owned firm and its strategies are unhindered by sales quotas or any outside influence that may impede the firm’s pursuit of investment management excellence.

Past performance is not a guarantee of future results.

No investment strategy can assure a profit or protect against loss. Diversification does not assure a profit or protect against a loss in a declining market.

1Source: IMF Data Mapper “World Economic Outlook” April 2018. There is no assurance that a forecast will be accurate. Because of the many variables involved, an investor should not rely on forecasts without realizing their limitations.

2Sources: Worldscope via FactSet, The Brandes Institute, as of 6/30/2016. Using data from 1980 to 2016, the study showed that over the long term, a value premium was evident across regions. The emerging markets sample consisted of publicly traded companies domiciled in countries not categorized as developed countries (excluding the smallest 50% of companies). Stocks were first divided into 10 deciles based on price-to-book. Aggregate performance of each decile was tracked over the next five years. This process was then repeated each year. For emerging markets stocks decile 10 value stocks outperformed decile 1 glamour stocks by an average annualized rolling five-year return of 13.59% as measured by their price-to-book ratios. Past performance is not a guarantee of future results.

The MSCI Emerging Markets Index with net dividends captures large and mid cap representation of emerging market countries. Data prior to 2001 is gross dividend and linked to the net dividend returns.  

MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

International and emerging markets investing is subject to certain risks such as currency fluctuation and social and political changes, differences in financial reporting standards and less stringent regulation of securities markets which may result in greater share price volatility; such risks are increased when investing in emerging markets. Additional risks associated with emerging markets investing include smaller-sized markets, liquidity risks, and less established legal, political, social, and business systems to support securities markets. Some emerging markets countries may have fixed or managed currencies that are not free-floating against the U.S. dollar. Certain of these currencies have experienced, and may experience in the future, substantial fluctuations or a steady devaluation relative to the U.S. dollar.

This material is intended for informational purposes only. The information provided in this material should not be considered a recommendation to purchase or sell any particular security. It should not be assumed that any security transactions, holdings, or sectors discussed were or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance discussed herein. Portfolio holdings and allocations are subject to change at any time. Strategies discussed herein are subject to change at any time by the investment manager in its discretion due to market conditions or opportunities. Market conditions may impact performance.

The Brandes Emerging Markets Equity Strategy seeks long-term capital appreciation by investing primarily in equity securities of emerging and frontier country issuers. 

The strategy benchmark is the MSCI Emerging Markets Index

In September 2016 the strategy benchmark changed from gross of withholding tax to net of withholding tax, effective back to the inception date of the strategy. For periods where the net dividend returns are not available gross benchmark returns are used and linked to the net benchmark returns. The change was made to better reflect our expectation for an investor’s actual experience.

GIPS® Compliant Presentation:

Annualized Performance (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Emerging Markets Equity
-8.67%
13.66%
1.53%
4.41%
6.73%
9.64%
10.81%
Primary Benchmark (a)
-0.81%
12.36%
3.61%
5.03%
5.40%
9.65%
9.86%
Relative Performance
-7.86%
1.30%
-2.08%
-0.62%
1.33%
-0.01%
0.95%

Annualized Performance (Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
1 Year
3 Years
5 Years
7 Years
10 Years
15 Years
20 Years
Emerging Markets Equity
-7.97%
14.55%
2.32%
5.27%
7.63%
10.60%
11.70%
Primary Benchmark (a)
-0.81%
12.36%
3.61%
5.03%
5.40%
9.65%
9.86%
Relative Performance
-7.16%
2.19%
-1.29%
0.24%
2.23%
0.95%
1.84%

Annual Periods (Net)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
 
2017
2016
2015
2014
2013
2012
2011
Emerging Markets Equity
27.72%
25.15%
-20.23%
-7.83%
6.76%
15.70%
-20.24%
Primary Benchmark (a)
37.28%
11.19%
-14.92%
-2.19%
-2.60%
18.22%
-18.42%
 
2010
2009
2008
2007
2006
2005
2004
Emerging Markets Equity
18.22%
110.89%
-46.98%
18.67%
30.02%
21.66%
32.01%
Primary Benchmark (a)
18.88%
78.51%
-53.33%
39.42%
32.14%
34.00%
25.55%
 
2003
2002
2001
2000
1999
1998
Emerging Markets Equity
68.56%
-19.17%
0.17%
-16.68%
68.98%
-20.32%
Primary Benchmark (a)
55.82%
-6.17%
-2.62%
-30.61%
66.41%
-25.34%

Quarterly Performance (Net And Gross)

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
 
1Q
2Q
3Q
4Q
YTD
2018
NET
GROSS
Primary Benchmark (a)
00 -0.09%
-00 0.10%
-00 1.42%
00 -9.99%
00 -9.82%
00 -7.96%
00 -0.87%
00 -0.68%
00 -1.09%
-0000000
-0000000
-0000000
0 -10.85%
0 -10.34%
00 -7.68%
2017
NET
GROSS
Primary Benchmark (a)
-0 10.72%
-0 10.94%
-0 11.44%
-00 2.71%
-00 2.91%
-00 6.27%
-00 9.62%
-00 9.84%
-00 7.89%
-00 2.45%
-00 2.64%
-00 7.44%
-0 27.72%
-0 28.71%
-0 37.28%
2016
NET
GROSS
Primary Benchmark (a)
-0 13.35%
-0 13.58%
-00 5.71%
-00 2.86%
-00 3.06%
-00 0.66%
-00 7.79%
-00 8.00%
-00 9.03%
00 -0.43%
00 -0.23%
00 -4.16%
-0 25.15%
-0 26.13%
-0 11.19%
2015
NET
GROSS
Primary Benchmark (a)
00 -5.23%
00 -5.05%
-00 2.24%
-00 0.91%
-00 1.11%
-00 0.69%
0 -19.07%
0 -18.91%
0 -17.90%
-00 3.06%
-00 3.26%
-00 0.66%
0 -20.23%
0 -19.61%
0 -14.92%
2014
NET
GROSS
Primary Benchmark (a)
00 -0.60%
00 -0.40%
00 -0.43%
-0 11.84%
-0 12.06%
-00 6.60%
00 -5.68%
00 -5.49%
00 -3.50%
0 -12.10%
0 -11.92%
00 -4.50%
00 -7.83%
00 -7.10%
00 -2.19%
2013
NET
GROSS
Primary Benchmark (a)
-00 3.05%
-00 3.27%
00 -1.62%
00 -8.12%
00 -7.92%
00 -8.08%
-00 9.51%
-00 9.75%
-00 5.77%
-00 2.97%
-00 3.19%
-00 1.83%
-00 6.76%
-00 7.69%
00 -2.60%
2012
NET
GROSS
Primary Benchmark (a)
-0 15.36%
-0 15.62%
-0 14.07%
00 -9.33%
00 -9.13%
00 -8.89%
-00 5.12%
-00 5.35%
-00 7.74%
-00 5.23%
-00 5.46%
-00 5.58%
-0 15.70%
-0 16.72%
-0 18.22%
2011
NET
GROSS
Primary Benchmark (a)
-00 3.04%
-00 3.28%
-00 2.05%
00 -1.57%
00 -1.33%
00 -1.15%
0 -24.80%
0 -24.63%
0 -22.56%
-00 4.58%
-00 4.81%
-00 4.42%
0 -20.24%
0 -19.50%
0 -18.42%
2010
NET
GROSS
Primary Benchmark (a)
-00 1.66%
-00 1.89%
-00 2.40%
00 -8.25%
00 -8.04%
00 -8.37%
-0 14.82%
-0 15.08%
-0 18.03%
-0 10.39%
-0 10.64%
-00 7.34%
-0 18.22%
-0 19.30%
-0 18.88%
2009
NET
GROSS
Primary Benchmark (a)
00 -1.47%
00 -1.23%
-00 0.95%
-0 42.71%
-0 43.04%
-0 34.73%
-0 33.44%
-0 33.74%
-0 20.91%
-0 12.39%
-0 12.65%
-00 8.55%
- 110.89%
- 112.85%
-0 78.51%
2008
NET
GROSS
Primary Benchmark (a)
00 -4.05%
00 -3.83%
0 -10.99%
00 -8.53%
00 -8.31%
00 -0.86%
0 -18.95%
0 -18.76%
0 -26.95%
0 -25.47%
0 -25.28%
0 -27.60%
0 -46.98%
0 -46.48%
0 -53.33%
2007
NET
GROSS
Primary Benchmark (a)
-00 4.00%
-00 4.25%
-00 2.26%
-0 18.16%
-0 18.43%
-0 14.98%
-00 2.08%
-00 2.31%
-0 14.42%
00 -5.40%
00 -5.18%
-00 3.63%
-0 18.67%
-0 19.77%
-0 39.42%
2006
NET
GROSS
Primary Benchmark (a)
-00 7.11%
-00 7.38%
-0 12.02%
00 -4.31%
00 -4.11%
00 -4.34%
-00 8.44%
-00 8.65%
-00 4.86%
-0 16.98%
-0 17.28%
-0 17.60%
-0 30.02%
-0 31.21%
-0 32.14%
2005
NET
GROSS
Primary Benchmark (a)
-00 0.71%
-00 0.93%
-00 1.80%
-00 4.47%
-00 4.72%
-00 4.12%
-00 8.79%
-00 9.13%
-0 17.95%
-00 6.29%
-00 6.62%
-00 7.18%
-0 21.66%
-0 22.96%
-0 34.00%
2004
NET
GROSS
Primary Benchmark (a)
-00 8.56%
-00 8.74%
-00 9.59%
00 -3.84%
00 -3.67%
00 -9.64%
-00 7.53%
-00 7.76%
-00 8.14%
-0 17.59%
-0 17.86%
-0 17.24%
-0 32.01%
-0 33.03%
-0 25.55%
2003
NET
GROSS
Primary Benchmark (a)
00 -4.55%
00 -4.47%
00 -6.00%
-0 29.70%
-0 29.81%
-0 23.29%
-0 15.66%
-0 15.78%
-0 14.15%
-0 17.71%
-0 17.94%
-0 17.78%
-0 68.56%
-0 69.32%
-0 55.82%
2002
NET
GROSS
Primary Benchmark (a)
-00 4.53%
-00 4.70%
-0 11.34%
0 -14.16%
0 -14.08%
00 -8.44%
0 -20.38%
0 -20.15%
0 -16.35%
-0 13.15%
-0 13.40%
-0 10.04%
0 -19.17%
0 -18.54%
00 -6.17%
2001
NET
GROSS
Primary Benchmark (a)
00 -3.22%
00 -3.06%
00 -5.50%
-00 8.99%
-00 9.16%
-00 3.93%
0 -22.92%
0 -22.78%
0 -21.66%
-0 23.20%
-0 23.41%
-0 26.58%
-00 0.17%
-00 0.84%
00 -2.62%
2000
NET
GROSS
Primary Benchmark (a)
00 -4.27%
00 -4.11%
-00 2.42%
00 -3.22%
00 -3.14%
0 -10.16%
00 -3.87%
00 -3.74%
0 -13.00%
00 -6.45%
00 -6.19%
0 -13.32%
0 -16.68%
0 -16.13%
0 -30.61%
1999
NET
GROSS
Primary Benchmark (a)
-0 11.12%
-0 11.35%
-0 12.44%
-0 29.14%
-0 29.22%
-0 24.40%
00 -3.79%
00 -3.63%
00 -5.15%
-0 22.40%
-0 22.44%
-0 25.44%
-0 68.98%
-0 69.78%
-0 66.41%
1998
NET
GROSS
Primary Benchmark (a)
-0 12.88%
-0 13.13%
-00 6.19%
0 -29.35%
0 -29.10%
0 -23.60%
0 -16.70%
0 -16.50%
0 -22.01%
-0 19.94%
-0 20.19%
-0 17.99%
0 -20.32%
0 -19.51%
0 -25.34%

Composite Characteristics

THROUGH September 30, 2018 | REPORTING CURRENCY: USD
Year
#Accts
Assets
(mil)
Dispersion
% of non-fee
paying assets
Total Firm
Assets (mil)
2018
-000, 327
-00 2,554
-000,
-000,
-0 22,449
2017
-000, 318
-00 2,388
-00 0.57
-0 <1
-0 25,578
2016
-000, 324
-00 1,885
-00 0.61
-0 <1
-0 22,971
2015
-000, 338
-00 1,773
-00 0.67
-0 <1
-0 20,666
2014
-000, 400
-00 3,434
-00 1.01
-00 2
-0 20,722
2013
-000, 272
-00 2,787
-00 0.84
-00 3
-0 21,464
2012
-000, 252
-00 2,226
-00 1.99
-00 2
-0 22,171
2011
-000, 227
-00 1,538
-00 1.35
-00 3
-0 26,658
2010
-000, 182
-000, 970
-00 0.46
-00 5
-0 38,659
2009
-000, 179
-000, 987
-0 10.49
-00 5
-0 42,152
2008
-000, 177
-000, 581
-00 1.37
-0 12
-0 40,591
2007
-000, 215
-00 1,516
-00 1.22
-00 3
-0 83,242
2006
-000, 243
-00 1,282
-00 2.05
-00 3
-0 85,974
2005
-000, 230
-000, 965
-00 1.32
-00 3
- 101,874
2004
-000, 109
-000,0 98
-00 1.96
-0 14
-0 98,078
2003
-000,0 80
-000,0 54
-00 5.93
-0 14
-0 75,789
2002
-000,0 87
-000, 198
-00 3.42
-00 3
-0 51,808
2001
-000,0 81
-000,0 64
-00 1.73
-00 3
-0 61,996
2000
-000,0 92
-000,0 66
-00 1.26
-00 3
-0 50,852
1999
-000,0 33
-000,0 66
-00 2.60
-00 3
-0 41,538
1998
-000,0 17
-000,0 33
-00 0.59
-00 4
-0 25,125
THROUGH September 30, 2018 | REPORTING CURRENCY: USD

The results for individual accounts and for different periods may vary.  Investors should not rely on prior performance results as a reliable indication of future results. Market conditions may impact performance. The performance results presented were achieved in particular market conditions which may not be repeated. Moreover, the current market volatility and uncertain regulatory environment may have a negative impact on future performance.
As of September 30, 2013, Brandes Investment Partners includes the non-SMA Division of Brandes Investment Partners L.P., Brandes Investment Partners (Europe) Limited, Brandes Investment Partners (Asia) Pte Ltd and the Brandes Investment Partners & Co. assets sub-advised by Brandes Investment Partners, L.P. The firm was redefined to reflect the expansion of the organization. As of January 1, 2006, Brandes Investment Partners was divided into two separate divisions: the SMA Division of Brandes Investment Partners, which acts as a discretionary manager to SMA or “wrap fee” program clients, including those who may invest in an SMA product; and the non-SMA Division of Brandes Investment Partners (Brandes), which acts as a discretionary manager for all other types of clients which may include pooled investment vehicles, institutional accounts and high net worth clients outside of wrap fee programs. Although the divisions may share portfolio management and other personnel, each division serves a particular target market, may trade in a different manner and may offer investment advice which differs from the other depending upon the individualized needs of the clients served. The performance data presented does not contain any SMA Division accounts.
The Brandes Emerging Markets Equity Composite seeks to achieve long-term capital appreciation by investing primarily in equity securities of emerging and frontier country issuers in those emerging market and frontier countries in which the firm believes the economies are developing strongly and the markets are becoming more sophisticated, regardless of market capitalization. The firm intends to invest the composite primarily in issuers located in emerging market countries within some or all of Asia, Europe, Central and South America, Africa, and the Middle East. Emerging markets securities pose greater liquidity risks and other risks than securities of companies located in developed countries and traded in more established markets.
Brandes claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions and/or presentation that complies with GIPS standards, contact client service at 800-237-7119 or write 11988 El Camino Real, Suite 600, P.O. Box 919048, San Diego, California 92191-9048 or email ClientService@Brandes.com.
(a) The MSCI Emerging Markets Index with net dividends captures large and mid cap representation of emerging market countries. Data prior to 2001 is gross dividend and linked to the net dividend returns. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. The benchmark returns are not covered by the report of independent verifiers.
Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.

Documents

Multimedia

  • Searching for Value in Emerging Markets November 27, 2013