Emerging Markets Small Cap Equity
Concentrated, high-conviction approach
Constructs focused portfolios by targeting 40–60 companies with strong earnings growth potential
Focus on mispriced earnings
Builds active positions in high-quality names where we have a differentiated view on earnings
Targeting an asymmetric return profile
Emphasizes quality bias to pursue upside potential and manage downside risk
Strategy highlights
Inception date
May 31, 2019
Benchmark
MSCI Emerging Markets Small Cap Index
Total strategy assets†
$3.5M
(as of March 2024)
Investment vehicles
- Separate account
- Commingled
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.
Investment team
Performance
Annualized composite performance (%) as of March 31, 2024
| MTD | QTD | YTD | 1 Year | 3 Years | Since Inception | |
|---|---|---|---|---|---|---|
| Emerging Markets Small Cap Equity (gross) | 2.62% | 7.59% | 7.59% | 31.67% | 5.23% | 15.07% |
| Emerging Markets Small Cap Equity (net) | 2.55% | 7.39% | 7.39% | 30.68% | 4.43% | 14.21% |
| MSCI Emerging Markets Small Cap Index | 0.06% | 1.03% | 1.03% | 20.53% | 4.22% | 9.91% |
Calendar-year composite performance (%) as of March 31, 2024
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Emerging Markets Small Cap Equity (gross) | 32.62% | -31.74% | 22.08% | 46.43% | -- | -- | -- | -- | -- | -- |
| Emerging Markets Small Cap Equity (net) | 31.62% | -32.25% | 21.17% | 45.33% | -- | -- | -- | -- | -- | -- |
| MSCI Emerging Markets Small Cap Index | 23.92% | -18.02% | 18.75% | 19.29% | -- | -- | -- | -- | -- | -- |
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.
Literature
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Important disclosures
The Putnam Investments Emerging Markets Small Cap Equity (the "Composite") seeks long-term capital appreciation by investing primarily in equity securities of small cap companies incorporated in emerging market countries. Accounts in the Composite may invest in ADRs, common stocks, preferred stocks, ETFs, convertible bonds, other securities exchangeable or convertible into common stocks, private placements and Rule 144a securities. The strategy may also use derivative instruments (including futures, swaps, options, and forwards) both hedging and non -hedging purposes. The Composite's benchmark is the MSCI Emerging Markets Small Cap Index (ND). The Composite includes all fully discretionary accounts managed by Putnam Investments in this investment style. 100% of the Composite is comprised of non-fee paying, proprietary assets. The Composite creation date was June 12, 2019. The Composite inception date was May 31, 2019.
The MSCI Emerging Markets Small Cap Index includes small cap representation across 26 Emerging Markets countries. With 1,644 constituents, the index covers approximately 14% of the free float-adjusted market capitalization in each country. Benchmarks are generally taken from published sources and may have different calculation methodologies, pricing times, and foreign exchange sources from the Composite.
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.