The PARemerging Markets Equities Fund is an actively managed equity fund following the rule-based Quantitative Stock Selection approach. It aims to outperform the benchmark in the long run by exploiting market inefficiencies in the emerging markets through pure stock selection. Relative performance results entirely from stock selection due to the neutral sector, country and currency positioning of the portfolio relative to the benchmark.
Stock selection is broadly based, systematic and rule-based. Under this approach, around 1,500 emerging market stocks are evaluated using dynamically and regionally selected factors from the following six style groups and given a ranking: earnings revisions, price momentum, risk, quality, growth and valuation. The style groups are managed on the basis of a proven economic cycle model, which enables the investors’ cyclically sensitive behavior to be taken into account and leads to an improvement in and smoothing of the performance.
|1. Systematic, rule-based, and diversified selection of stocks in emerging markets. Avoidance of arbitrary or emotional investment decisions.|
|2. Long-term outperformance of the benchmark through pure stock selection. No additional risks compared with the benchmark.|
|3. Dynamic application of relevant evaluation factors and consideration of investors’ cyclically sensitive behavior. The effectiveness of the individual evaluation factors is continuously measured and checked, and the factors are substituted if necessary.|
Performance in USD
|PARemerging Markets Equities Strategy||-0,8%||5,3%||-9,3%||22,9%||48,6%||-6,7%|
|Volatility 1 Year||15,0%||Active Share||66%|
|Ann. Excess Return||6,4%||Tracking Error||5,6|
|Jensens Alpha||6,3||Sharpe Ratio||0,6|
|Treynor Ratio||8,8||Information Ratio||1,1|
Source: Performances from January 2013 to September 2017 are based on a proforma given by PARSUMO. From October 2017 data from Apex.
Past performance is not a guarantee of future returns.
Implementation of PARemerging Markets Equities Fund
|Strategy||Actively managed equity fund|
|Investment universe||All stocks listed in the emerging markets|
|Investment instruments||Individual stocks, exchange traded funds, liquidity|
|Benchmark||MSCI Emerging Markets Index NR|
|Performance contribution||Stock selection|
|Benchmark-oriented weighting at level||Sector|
|Custodian bank||UBS Europe SE, Luxembourg|
|Management company||Notz, Stucki Europe S.A., Luxembourg|
|Management fee||0.84% p.a.|
|Investment manager||PARSUMO Capital AG, Zurich|
|Legal form*||Luxembourg UCITS IV/ SICAV|
|Minimum initial subscription||USD 100'000|
Possible applications – benefits for investors
The PARemerging Markets Equities Fund is suitable as a satellite investment for risk-embracing, long-term-oriented investors. Thanks to an effective diversified investment policy across the emerging markets, the fund represents a comprehensive solution for implementing the emerging markets asset class.
|Factsheet||Key Investor Information||Market Data|