Harding Loevner LP, a leading US-based global equities manager, today announced the launch of its first Australian-domiciled unit trust, the Harding Loevner Emerging Markets Equity Fund. The Fund is managed according to the firm’s Emerging Markets Equity Strategy, which has a 16-year track record.
“Australian investors are looking for ways to diversify away from local equity markets and invest in high-quality companies in emerging markets,² said Scott Crawshaw, a member of the Strategy¹s portfolio management team.
The Emerging Markets Equity Strategy seeks long-term capital appreciation through investment in equity securities of companies operating in emerging markets countries. The Strategy is led by its Co-Lead Portfolio Managers, Rusty Johnson, CFA and Craig Shaw, CFA, who together are responsible for all investment decisions. Johnson and Shaw are supported by the three additional members of the portfolio management team, Scott Crawshaw, Pradipta Chakrabortty and Richard Schmidt, CFA.
The investment strategy is built around in-depth analysis of individual companies and the competitive dynamics of their industries. ³We look for growing companies with sustainable competitive advantages, where management has been able to deliver returns above the cost of capital. Many of the portfolio holdings operate dominant franchises – the type of firms that typically perform ahead of their peers when the broader market indices are underperforming,² Co-Lead Portfolio Manager Rusty Johnson noted.
³The hallmark of our investment approach is to identify and invest in companies that average higher profit margins, generate greater return on assets and equity, and that carry lower debt levels.² Johnson said.
³These holdings also display faster and durable growth attributes over time in sales, earnings and cash flow. We think that if we gain insight into a company¹s fundamental quality and growth, pay attention to valuations, and stick with our investment thesis over time, we will be able to generate excess returns and do so with less risk.²
According to Johnson, the Strategy¹s focus on the fundamental quality of individual businesses has led to a portfolio significantly different from its benchmark, the MSCI Emerging Markets Index. ³We build diversified portfolios, but we start with our company thesis first.²
Crawshaw added: ³This approach has resulted in a track record that has performed very well through time, with low stock turnover, and a portfolio that tends to hold up better than the market when markets decline.²
Minimum Initial Investment amount is A$25,000.
About Harding Loevner LP
David R. Loevner and Daniel D. Harding, former global investment managers at Rockefeller & Co., established Harding Loevner in 1989. The firm has focused since that time on managing global, international, and emerging markets equity portfolios, using an investment process that combines fundamental company research with the global analysis of industry competitive structures.
As of 31 March 2015, Harding Loevner has 87 employees, including 33 investment professionals. Its head office is located in Bridgewater, New Jersey. Assets under management are US$42 billion.
Harding Loevner is a U.S. Securities and Exchange Commission registered investment adviser and provides financial services in Australia under ASIC Instrument No. 10/0215, which exempts Harding Loevner from the requirement to hold an Australian Financial Services Licence in respect of financial services provided by it or its representatives to Wholesale Clients on certain conditions.
Harding Loevner has been an Affiliate of Affiliated Managers Group, Inc. since 2009.
About Affiliated Managers Group, Inc
Affiliated Managers Group, Inc. (NYSE: AMG) is a global asset management company with investments in leading boutique investment management firms. For 20 years, AMG has generated superior growth by partnering with the highest quality boutique investment management firms, using direct equity ownership in a framework that closely aligns AMG¹s interests with those of its Affiliate partners. While providing Affiliates with continued operational autonomy, AMG also helps them to leverage the benefits of AMG¹s scale in U.S. retail and global product distribution, operations and technology to enhance their growth and capabilities.
AMG made its first Affiliate investment in 1994, and today, through its Affiliates, manages approximately US$638 billion in assets across a wide array of investment styles, asset classes and geographies on behalf of institutional and retail clients around the world.
AMG operates an office in Sydney on behalf of its Affiliates. See www.amg.com/Australia for further details.
