The Emerging Markets Equity Index investment strategy seeks a favorable long-term total return from a diversified portfolio of equity securities selected to track publicly-traded stocks in emerging markets based on the MSCI Emerging Markets Index.
The Emerging Markets Equity Index strategy attempts to replicate the MSCI Emerging Markets Index using a proprietary quantitative process that closely matches the overall investment characteristics of the index. The investment process takes into account access to cash flow, trading activity, and corporate actions in order to maintain the portfolio in line with benchmark.
In addition, the portfolio management team employs proprietary optimizing techniques to evaluate and control portfolio risk, with a goal of maintaining portfolio-tracking error within very close range of the index while effectively managing trading costs and other portfolio expenses.
Emerging Market Equity Index portfolios are subject to certain risks such as market and investment style risk. Investing in non-U.S. markets involves certain additional risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity, and the potential for market volatility and political instability. In addition, investing in emerging markets may involve relatively higher degrees of volatility. Investments in small- to medium-sized corporations are more vulnerable to financial risks and other risks than larger corporations and may involve a higher degree of price volatility than investments in the general equity markets.
This material is provided for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate.