Emerging Markets Equity
July 31, 1997
MSCI Emerging Markets Index (ND)
Total strategy assets†
(as of September 2021)
- Separate account
- Mispriced securities, driven by lack of coverage and misunderstanding of growth drivers, represent the greatest growth opportunities in these markets, especially in private sector small- to mid-cap stocks
- A deep understanding of corporate and political governance can help avoid risk
- A process that blends multiple sources of alpha can provide a more consistent view of opportunities in the emerging markets
- A sophisticated risk management framework can help ensure allocation to areas of greatest conviction
*No assurance can be given that the investment objective will be achieved or that an investor will receive a return of all or part of his or her initial investment. Actual results could be materially different from the stated goals. Investors should carefully consider the risks involved before deciding to invest. As with any investment, there is a potential for profit as well as the possibility of loss.
†Assets may include accounts that are not reflected in the composite.
Annualized composite performance (%) as of September 30, 2021
|MTD||QTD||YTD||1 Year||3 Years||5 Years||10 Years|
|Emerging Markets Equity (gross)||-5.04%||-8.41%||-1.92%||15.14%||15.43%||13.93%||10.22%|
|Emerging Markets Equity (net)||-5.12%||-8.63%||-2.60%||14.07%||14.35%||12.85%||9.15%|
|MSCI Emerging Markets Index (ND)||-3.97%||-8.09%||-1.25%||18.20%||8.58%||9.23%||6.09%|
Calendar-year composite performance (%) as of September 30, 2021
|Emerging Markets Equity (gross)||38.90%||23.92%||-15.73%||44.14%||7.64%||-9.57%||0.32%||3.33%||19.82%||-25.06%|
|Emerging Markets Equity (net)||37.60%||22.77%||-16.53%||42.75%||6.60%||-10.46%||-0.69%||2.29%||18.62%||-25.81%|
|MSCI Emerging Markets Index (ND)||18.31%||18.42%||-14.57%||37.28%||11.19%||-14.92%||-2.19%||-2.60%||18.22%||-18.42%|
Past performance is not a guarantee of future results. An investment in this strategy could lose value. Most recent month-end performance is preliminary. Returns are subject to change.
Periods less than one year are not annualized. Performance is stated in U.S. dollars and includes the reinvestment of dividends and interest.
The Putnam Investments Emerging Markets Equity Composite (the "Composite") seeks above-average total returns relative to its agreed benchmark, the Morgan Stanley Capital International (MSCI) Emerging Markets Index, with low relative volatility through an actively managed, broadly diversified emerging-market equity portfolio. Putnam Investments seeks to utilize a top-down/bottom-up approach. The approach focuses on country and sector diversification, the selection of truly mispriced companies by identifying stocks selling at significant discounts to real and relative worth with positive valuation indicators and, when appropriate, currency hedging to defend portfolio values. The Composite comprises all fully discretionary accounts, including carve-out assets, managed by Putnam Investments in this investment style. Carve-out assets included in the Composite are managed separately with their own cash. A "carve-out" is a portion of a portfolio that is by itself representative of a distinct investment strategy. It is used to create a track record for a narrower mandate from a multiple-strategy portfolio managed to a broader mandate. Leverage is not utilized in any account in this Composite. However, derivatives (including options, forward contracts, currency forwards, and swaps) may be used in some portfolios for hedging purposes or to secure cash and liquidity. The Composite may include portfolios with different tax statuses or with different base currencies. While the Composite may include portfolios with certain existing investment restrictions, the Firm does not believe these restrictions will materially impact the investment strategy. The Composite inception date was July 31, 1997. The Composite creation date was January 2, 2008. Effective August 23, 2019, there was a portfolio manager change for this strategy.
The Morgan Stanley Capital International (MSCI) Emerging Markets Index (net) is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging-market countries in Europe, Latin America, and the Pacific Basin. The MSCI Emerging Markets Index excludes closed markets and those shares in otherwise free markets that are not purchasable by foreigners.
Composites may include portfolios with certain existing investment restrictions that the Firm believes do not materially impact the investment strategy. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and/or foreign-exchange sources from the composite. The effect of those differences is generally deemed to be immaterial. The securities holdings of the Composite may differ materially from those of the index used for comparative purposes. Composites and benchmarks include the reinvestment of dividends and other earnings. Indexes are unmanaged and do not incur expenses. You cannot invest directly in an index. Gross-of-fee returns do not include the deduction of management fees and other expenses that may be incurred in managing an investment account. A portfolio's return will be reduced by advisory and other fees. Net-of-fee returns are calculated using a model fee. For the applicable time periods, net-of-fees returns reflect either the deduction of the highest management fee that is paid by a portfolio in the Composite during the performance period, applied on a monthly basis, or the deduction of the highest applicable management fee in effect during the performance period that would be charged based on the fee schedule appropriate to this mandate, without the benefit of breakpoints, applied on a monthly basis, whichever is higher. Net-of-fee calculation methodology may change over time. Actual investment advisory fees incurred by clients are typically negotiated on an individual basis and may vary depending upon, among other things, the applicable fee schedule and portfolio size. Our standard fee schedules are available upon request.