Emerging Markets Value Equity Third Quarter 2014 Strategy Overview

Emerging Markets Value Equity
Third Quarter 2014
Strategy Overview
Key Facts
Team
D. Kirk Henry, CFA, leads a team of investment professionals, who manage $4.0 billion in total
assets. A team of Global Research analysts with emerging markets expertise supports their
efforts.
Assets Under Management
$3.9 billion
Benchmark
MSCI EM Index
Objective
The Boston Company Asset Management, LLC, is committed to a value-oriented, researchdriven and risk-aware investment philosophy. Our Emerging Markets Value Equity strategy
strives to consistently outperform the MSCI Emerging Markets Index with commensurate
volatility through disciplined stock selection.
Inception
July 1995
Investment Vehicles
Separate Account,
Commingled Vehicles
Strategy Highlights
• Fundamental, bottom-up, relative value investment approach.
Key Stats & Risk Management
Typical Holdings
100-150
Turnover
35-70%
5 Year Beta
1.03
• Resource-rich, talented and well-tenured investment team has a long history of stability and
consistency.
• Disciplined portfolio management process seeks to identify undervalued and underappreciated
securities capable of improving, which the market is overlooking. The team believes that
securities with elements of low valuation, good fundamentals and the potential for business
improvement have the best chance to outperform the market.
Performance Review
As of September 30, 2014 (%)
3 Yrs 5 Yrs 10 Yrs
Annual Returns as of December 31 (%)
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
QTR
YTD
1 Yr
-3.7
6.5
9.5
7.6
3.2
10.4
-2.9 16.8 -22.9 17.7 79.5 -45.5 28.2 29.4 27.7 29.4 57.3
1.4
9.4 -19.0 77.7 -16.5 0.5
-4.0
5.6
8.3
6.5
2.1
9.2
-4.0 15.6 -23.7 16.4 77.6 -46.1 26.9 28.1 26.4 28.0 55.7
0.2
8.2 -19.9 75.9 -17.4 -0.6 17.9
-3.4
2.7
4.7
7.6
4.8
11.0
-2.3 18.6 -18.2 19.2 79.0 -53.2 39.8 32.6 34.5 26.0 56.3 -6.0
-2.4 -30.6 66.4 -25.3 -11.6 6.0
Composite (net-of-fees)
Composite (gross-of-fees)
19.2
MSCI EM Index
Returns greater than one year are annualized. Returns are shown in U.S. dollars.
Quarterly Review
Portfolio Characteristics*
Sector Weights** (%)
Portfolio
Index
9.1x
1.0x
3.2%
$35.5B
123
11.4x
1.5x
2.8%
$42.1B
834
Price/Earnings Ratio
Price/Book Value Ratio
Dividend Yield
Wtd. Avg. Market Cap
Number of Holdings
40.0
20.0
0.0
8.9 8.8
71.1
Portfolio
Index
60.0
40.0
10.0
9.0
16.2
18.6
2.7
8.9
0.0
Asia/Pacific
16.8
12.5
11.9
8.3
5.9 7.7
5.3 3.5
Financials Health Care Industrials Information Materials
Technology
Telecom
Services
Utilities
0.9 2.1
Energy
8.3 6.5
Index
Top Five Active Weights*
63.4
20.0
4.3
11.510.2
8.5
Consumer Consumer
Discretionary Staples
Region Weights** (%)
80.0
Portfolio
30.6
27.5
Europe
Latin America
Middle East/Africa
Holding Name
KB Financial Group Inc.
Petroleo Brasileiro SA
Korea Electric Power Corp
Shanghai Industrial Holdings
Reliance Industries Limited
Total
Country
South Korea
Brazil
South Korea
China
India
Portfolio
2.6
3.6
1.9
1.5
2.0
11.7%
Index
0.4
1.3
0.3
0.0
0.5
2.5%
Representative Institutional Account. *Where applicable, excludes cash, futures, and ETFs utilized for cash management purposes. **Where applicable, excludes cash,
futures, and ETFs utilized for cash management purposes. ETFs held for select investment purposes are allocated according to their constituent exposure.
Data as of 9/30/14. Not an offer to sell, or a solicitation of an offer to purchase, any securities. Past performance is not a guarantee for
future performance. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market
environment. Returns prior to 1/1/2000 are not GIPS compliant. Please refer to the back page for other important disclosures. CFA® and
Chartered Financial Analyst® are registered trademarks owned by CFA Institute. Variation in totals due to rounding.
Emerging Markets Value Equity
Disclosure
Definition of the Firm
The Boston Company Asset Management, LLC (TBCAM) is a registered investment adviser established in 1970 and a subsidiary of The Bank of New
York Mellon Corporation.
Composite Description
The Emerging Markets Value Equity strategy is an international strategy that invests in value companies from a minimum of 15 emerging market
countries.
Benchmark
The MSCI Emerging Markets Index measures the performance of global emerging equity markets and is presented gross of withholding taxes.
Other Information
There may be material differences between the representative account and other accounts managed with the same strategy. Because of these
differences, the information based on the representative account should not necessarily be relied upon. It should not be assumed that securities
identified were or will be profitable or that decisions we make in the future will be profitable. Certain securities may not remain in the portfolio at the time
that you receive this report. Where applicable, includes assets managed by investment personnel of The Boston Company Asset Management, LLC
acting in their capacity as officers of affiliated entities.
TBCAM claims compliance with the Global Investment Performance Standards (GIPS®). To receive a list of composite descriptions of TBCAM
composites and / or a presentation that complies with the GIPS standards, contact [email protected].
Contact
For more information about our strategies, please contact:
Global Head of Distribution
Daniel J. McCormack
[email protected]
(617) 722-7376
www.thebostoncompany.com
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