Emerging Markets Equity
July 31, 1997
MSCI Emerging Markets Index (ND)
Total strategy assets†
(as of March 2023)
- Separate account
- We target 40-60 names with the goal of putting capital behind best ideas companies with strong balance sheets and the potential for above-average profitability
- We seek to overweight high-quality stocks where we have a differentiated view on forward earnings per share
- Emphasize quality bias with the goal of pursuing upside potential while limiting downside
- A structural underweight to state owned enterprises
*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 March 31, 2023
|MTD||QTD||YTD||1 Year||3 Years||5 Years||10 Years|
|Emerging Markets Equity (gross)||3.62%||6.42%||6.42%||-11.63%||8.56%||1.07%||4.72%|
|Emerging Markets Equity (net)||3.53%||6.16%||6.16%||-12.49%||7.54%||0.12%||3.71%|
|MSCI Emerging Markets Index (ND)||3.03%||3.96%||3.96%||-10.70%||7.83%||-0.88%||2.02%|
Calendar-year composite performance (%) as of March 31, 2023
|Emerging Markets Equity (gross)||-26.63%||-3.46%||38.89%||23.92%||-15.73%||44.14%||7.64%||-9.57%||0.32%||3.33%|
|Emerging Markets Equity (net)||-27.33%||-4.37%||37.60%||22.77%||-16.53%||42.75%||6.60%||-10.46%||-0.69%||2.29%|
|MSCI Emerging Markets Index (ND)||-20.09%||-2.54%||18.31%||18.42%||-14.57%||37.28%||11.19%||-14.92%||-2.19%||-2.60%|
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 to outperform the MSCI Emerging Markets Index over a full market cycle through deep fundamental research and exploiting inefficiencies specific to emerging markets. The strategy invests mainly in common stocks (growth or value stocks or both) of emerging market companies that we believe have favorable investment potential. Emerging markets include countries in the MSCI Emerging Market Index or that we consider to be emerging markets based on our evaluation of their level of economic development or the size and experience of their securities markets. The approach focuses on identifying high quality businesses with strong balance sheets, durable moats, and good governance. 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 or non-hedging purposes. 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. Effective December 1, 2021, the Composite was redefined to exclude accounts with significant restrictions on the available global markets open for direct investment which materially impact strategy implementation. 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.
Gross performance includes the deduction of transaction costs but does 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 performance reflects the deduction of a model fee applied on a monthly basis, equal to the actual management fee incurred by a portfolio in the Composite or the highest management fee that would be charged to a prospect of the strategy, whichever is higher. The model fee may change over time. Actual advisory fees may vary among clients with the same investment strategy. The Composite includes all actual, fully discretionary accounts with substantially similar investment policies and objectives managed to the Composite's 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 strategy may differ materially from those of the index used for comparative purposes.