Enhanced Emerging Markets

This strategy aims to maximise risk-adjusted, long-term returns by investing in a diversified portfolio of emerging market companies, while carefully managing tracking error against the benchmark

INVESTMENT UNIVERSE

Utilise Acadian’s proprietary alpha forecast to select securities from within the MSCI Emerging Markets Index

RETURN FORECAST

Daily analysis at stock-specific, peer group, and macro level results in objective risk and return forecast

PORTFOLIO CONSTRUCTION & TRADING

Forecasts enter proprietary portfolio optimisation system, weighing expected return against risk, liquidity, T-costs, real-world frictions

Investment Process

Financial assets are often mispriced due to behavioural errors, such as incorrectly processing information or acting on incomplete information.

Top-performing companies display many qualities. Their success is multi-faceted and cannot be attributed to any single factor.

Market inefficiencies and attractive opportunities are best captured using systematic processes.

Curated application of artificial intelligence (AI) and machine learning (ML) technology can help extract pertinent information from large, complex datasets.

Investment processes must be dynamic and adapt to changes in investor behaviour and the investment environment.

Acadian’s edge comes from embracing innovative ideas and continuously investing in people, technology, and data.

Why Enhanced Emerging Markets?

Why Enhanced Emerging Markets?

  • Investing in emerging markets can provide exposure to some of the most exciting and fastest growing investment opportunities in the world. For example, almost 70% of global semi-conductor needs are met by emerging market economies of Taiwan, China and South Korea. Information Technology now accounts for 20-30% of emerging market benchmarks by market capitalisation.
  • While emerging markets are generally expected to have a higher risk volatility than developed markets, the Acadian Enhanced Emerging Markets Equity Fund aims to capture the most attractive emerging market equity opportunities while carefully controlling the Fund’s risk against the Benchmark.
  • There is a typically a large dispersion of performance across emerging market fund managers and the Fund aims to produce consistent performance holding a broad portfolio of stocks and factor exposures.
  • The Fund is priced well, and costs less than the equivalent index/ETF exposure

Acadian Asset Management (Australia) Limited (“Acadian Australia”) ABN 41 114 200 127 is the holder of Australian financial services license ("AFSL") number 291872. It is also registered as an investment adviser with the U.S. Securities and Exchange Commission ("SEC"). Under the terms of its AFSL, Acadian Australia is limited to providing the financial services under its license to wholesale clients only.
Acadian Australia is a wholly owned subsidiary of Acadian Asset Management LLC (“Acadian”), a U.S. registered investment adviser regulated by the U.S. SEC. Acadian is exempt from the requirement to hold an AFSL under the Corporations Act 2001 (Cth) ("Corporations Act"). Acadian is regulated by the SEC under United States of America laws, which differ from Australian laws. This website is intended only to provide a summary of the subject matter covered. It does not purport to be comprehensive or to provide legal, taxation or other advice on the subject matter. No reader should act on the basis of any matter contained in this website without first obtaining specific professional advice.
The information on this web page is provided to you because Acadian Australia reasonably believes that you are a "wholesale client" within the meaning of that term under the Corporations Act and not any other class of persons. This information is not an advertisement and is not intended to induce retail clients to invest in any product. Retail clients who are interested in products referenced on this website should contact their financial adviser.
In Australia ‘Colonial’, ‘Colonial First State’, and ‘CFS’ are trademarks of Colonial Holding Company Limited and all of these trademarks are used on this website with consent.