Mondrian Focused Emerging Markets Equity Fund

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Fund Facts as of December 31st, 2016

ISIN IE00B8GBK575
Total Expense Ratio* 1.05%
Management Fee 0.80%
Benchmark MSCI Emerging Market (NDR) Index
Inception Date 05/27/2011
Base Currency USD
Entry/Exit Charge 0.50%
Minimum Initial Investment $5,000,000
Minimum Subsequent Investment $1,000,000
NAV price (Previous BD price)
NAV date (Previous BD date)
Hedged No

focused emerging disclouser

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Fund Features

Universe of Securities

Mondrian initially screens a universe for securities with market capitalizations of approximately $3.5 billion at the inception of the position, equating to over 500 companies and roughly 90% of the MSCI EM Index by aggregate market capitalization.

All countries in the MSCI EM index are considered, but we are not restricted to the markets or stocks in the benchmark index. Mondrian can invest in any company with a primary listing on a stock exchange outside the United States, Canada or EAFE markets. In addition, any company listed on the aforementioned that has greater than 50% of its profits, assets or revenues generated from an emerging market would be a candidate for inclusion.

Security Selection

Security selection is the most important part of Mondrian’s equity investment process. Mondrian uses the same dividend discount valuation model of future income streams across all markets, securities and industries. Securities which are significantly mispriced relative to the dividend discount valuation are purchase and sale candidates.

Key to the security selection process is fundamental company analysis and a regular program of meeting with companies. Meeting with the management of holdings is important to the investment process. The firm uses forward looking valuations, and therefore, the business plans and projections for a company’s future are extremely important.

Country Selection

Tied to the security selection is a top-down country allocation overlay that helps to structure the portfolio. Markets are analysed by the relevant regional specialist who uses an aggregated dividend discount model to assess each market’s real return potential. This analysis is combined with shorter term political and monetary considerations to assist the Emerging Markets Equity team in screening for potential ideas and to guide them in building the portfolio’s country allocations. These allocations can vary substantially from the index.

Sector/ Industry Selection

Sector / Industry selection forms a secondary part of the Fund’s portfolio construction process. Levels of all allocations to sectors are monitored to ensure prudent diversification. Sector allocations can vary substantially from the index.

Currency Selection

We believe in the long term, currencies adjust back to their long term purchasing power parity value relative to the US dollar. Over the short-term, currencies can fluctuate significantly around this value. Consequently, Mondrian may defensively hedge a foreign currency back to the US dollar if we feel that currency is materially overvalued. Alternatively we may employ indirect hedging of a vulnerable currency through individual stock investments.

Market Cap

The Fund invests in companies with a market cap of $3.5bn or greater.

The Emerging Markets Index is a float-adjusted market capitalization index that consists of indices in 23 emerging economies: Brazil, Chile, Colombia, Mexico, Peru, Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, Russia, South Africa, Turkey, United Arab Emirates, China, India, Indonesia, Korea, Malaysia, Philippines, Taiwan and Thailand. Index returns are shown with net dividends reinvested.

* Mondrian Investment Partners Limited (the Investment Manager) has contractually agreed to cap Administrative Expenses at 0.25% of the daily Net Asset Value of the Fund. This limit does not apply to or include the Management Fee, transaction related expenses and any nonrecurring expenses.

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