Download - 2013 may em small cap to send to citywire
AVIVA INVESTORSEMERGING MARKET EQUITY SMALLEMERGING MARKET EQUITY SMALL CAP FUND
MAY 2013
This document is for Professional Clients and institutional/qualified investors only. It is not to be viewed by or used with retail clients.
CONTENTSAviva Investors Emerging Markets Equity Review & Outlook 2013
CONTENTS
1. Emerging Markets Equities
2 Emerging Market Small Cap2. Emerging Market Small Cap
3. Aviva Investors Emerging Markets Equity Small Cap Fund Process
4 A di4. Appendices
– Biographies
Team Awards– Team Awards
2
Aviva Investors Emerging Markets Equity Review & Outlook 2013
1. EMERGING MARKET EQUITIES
3
EMERGING MARKETS OUR BELIEFSAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKETS – OUR BELIEFS
1.Emerging Market economies are projected to grow faster than developed economies,
while offering stronger fundamentals and more attractive valuationswhile offering stronger fundamentals and more attractive valuations
ff f2.Emerging Markets are less efficient than Developed Markets allowing for the
achievement of higher relative returns over the long term
3.Emerging Markets offer a different opportunity set and diversification from developed
markets
Source: Aviva Investors, 31 January 2013. 4
EMERGING MARKET EQUITYAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITYEMERGING AND DEVELOPED MARKET COMPARATORS
Emerging Economies as a percentage of world totalEmerging Economies as a percentage of world total
Population
Land Mass
Foreign Exchange reserves
Energy consumption
GDP at PPP
Exports
GDP at market rates
Market Cap (Full market)
0% 20% 40% 60% 80% 100%
Market Cap (float adjusted)
Emerging Markets Developed Markets
Emerging markets are under represented in financial markets
Source: Empirical Research and Aviva Investors, 2012 5
EMERGING MARKET EQUITYAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY INCREASING IN GLOBAL IMPORTANCEGDP Growth by Region Proportion of Global GDP
8
10
63%51%
41%
50%
75%
100%
2
4
6
37%49%
59%
0%
25%
50%
2010 2020 2030
-2
0
2
2000 2002 2004 2006 2008 2010 2012 2014 2016
2010 2020 2030
Proportion of Global Market Cap
45%75%
100%
-6
-4
Emerging Markets Developed Markets 44%55%
71%56%
45%
25%
50%
75%
Emerging Markets Developed Markets 29%
0%2010 2020 2030
– Emerging Markets are expected to continue their higher growth trajectory
Emerging markets are expected to grow dramatically in global relevance
– The importance of Emerging Markets to global financial markets will only continue to increase
Source: IMF World Economic Outlook Database April 2012 Source: Goldman Sachs. March 2011 6
EMERGING MARKET EQUITYAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY FINANCIALLY ROBUSTDebt to GDP ratio %
90
100
110
60
70
80
20
30
40
50
202000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Advanced economies Emerging Economies
– Developed markets are still working off the excess leverage from the credit boom
– Prior Emerging Market crisis have meant governments have been more prudent
Emerging Market sovereign debt has remained at manageable levels
Excess leverage is currently a developed market phenomenon
– Emerging Market sovereign debt has remained at manageable levels
Source: IMF World Economic Outlook April 2012. General government gross debt as a percentage of GDP 7
EMERGING MARKET GROWTHAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET GROWTHA LONG TERM STORY
Per Capita GDP Emerging vs Developed Markets since 1980 Emerging Market Population pyramid (2015)
– Emerging Markets are growing significantly faster than Developed Markets– Attractive Emerging Market demographics should continue to drive domestic growthAttractive Emerging Market demographics should continue to drive domestic growth
A secular growth story
Source. IMF, United Nations Population Division, Credit Suisse September 2012 8
EMERGING MARKETS ARE UNDER RESEARCHEDAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKETS ARE UNDER RESEARCHEDINFORMATION DISCOVERY LEADS TO GREATER LONG TERM RETURNS
Market Cap Number of Companies Analyst Coverage<$1.5bn 2044 9$
$1.5bn<$5bn 373 22
$5bn<$20bn 164 26
>$20bn 31 31>$20bn 31 31
Analyst coverage is focused on the mega cap space– Analyst coverage is focused on the mega cap space
– Analyst coverage is shallow and rapidly falls away
1/3rd of companies within our universe have less than 5 analysts following the company– 1/3rd of companies within our universe have less than 5 analysts following the company
– Coverage is often dominated by local brokerage firms
Market inefficiencies create long term investment opportunities
Source: Factset, February 2013 9
A VERY VOLATILE ENVIRONMENT FOR EQUITIESAviva Investors Emerging Markets Equity Review & Outlook 2013
A VERY VOLATILE ENVIRONMENT FOR EQUITIESSTUMBLING BETWEEN CRISIS AND BAIL OUTS
MSCI Emerging Markets (January 2011- April 2013)
1200
1250
Japanese
1100
1150
1200
+20% +23%
ECB bond buying and
QE3.0
EarthquakeOperation twist +
LTRO rally
1050
1100
950
1000
850
900
Spanish Crisis
European crisis and Emerging Market -28%
-18%
800Spanish Crisis
g gDeceleration
Source: Bloomberg and Factset, April 2013 10
EMERGING MARKET CORPORATE EARNINGSAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET CORPORATE EARNINGSA STABILISATION IN EARNINGS
150%
MSCI Emerging Markets: Earnings growth year-on-year (1995-April 2013)
100%
50%
50%
0%
-100%
-50%
01-199607-199601-199707-199701-199807-199801-199907-199901-200007-200001-200107-200101-200207-200201-200307-200301-200407-200401-200507-200501-200607-200601-200707-200701-200807-200801-200907-200901-201007-201001-201107-201101-201207-201201-2013
We believe a recovery in earnings growth should help drive emerging market equity returns
Source: Bloomberg and Factset, April 2013
We believe a recovery in earnings growth should help drive emerging market equity returns
11
EMERGING MARKET VALUATIONAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET VALUATIONVALUATION DISPERSION SHOWING SIGNS OF CONTRACTING
MSCI Emerging Markets: top quintile compared to market average (1992 – 2012)
2.5
3 Economic Slowdowns
1.5
2
O St d d
0
0.5
1One Standard
Deviation
Average
-1
-0.5
0 Average
One Standard Deviation
-1.5
E i k l i di i di i ll id d i i l d
Valuation dispersion creates attractive investment opportunities
– Equity market valuation dispersion traditionally widens during economic slowdowns
– We believe a wide valuation dispersion creates an attractive opportunity set for active investment managers.
Source: Bloomberg and Factset, April 2013
Valuation dispersion creates attractive investment opportunities
12
EMERGING MARKET EQUITYAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITYATTRACTIVELY VALUED
2 8
3.3
16
18
Emerging Market historic price to earnings and price to book ratio
1.8
2.3
2.8
10
12
14
P/E
P/B
20%
0.8
1.3
6
8
10
2007 2008 2009 2010 2011 2012
P/B
-20%
-10%
0%
10%
20%
P/E Relative to developed Markets
P/B Relative to developed
k t
-40%
-30%markets
– Emerging Market equities are cheap when compared to their historic valuation levels
– The discount to developed markets is approaching an extreme for emerging markets
– Current valuations are based on earnings depressed by a mid cycle economic slowdown
Emerging markets currently trade at an extreme discount to developed markets
Source: Factset/Bloomberg, April 2013
Emerging markets currently trade at an extreme discount to developed markets
13
EMERGING MARKET EQUITYAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY CHEAP ACROSS ASSET CLASSES
11
13
15
Dividend Yield
Emerging Market Sovereign Debt, Equity and Dividend Yield
3
5
7
9
Earnings Yield
1 5
2.0
Earnings
-1
1
3
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sovereign Yield
-0.5
0.0
0.5
1.0
1.5 Earnings Yield / Debt Yield
-1.0
– Emerging Market Sovereign yield has compressed over the last decade
– Sovereign yield is nearing parity with Emerging Market dividend yield
– Emerging Market earnings yield compared to sovereign yield is at an all time extreme
– “Fed Model” suggests emerging market equity is looking exceptionally cheap
Emerging market equity is cheap compared to emerging market debtSource : Factset/MSCI, April 2013; Sovereign Yield is based on the JPMorgan EMBI+ Yield; Earnings Yield is based on the MSCI Emerging Market Index
Emerging market equity is cheap compared to emerging market debt
14
Aviva Investors Emerging Markets Equity Review & Outlook 2013
2. EMERGING MARKETS EQUITY SMALL CAP
15
THE CASE FOR EMERGING MARKET EQUITY SMALL CAPSAviva Investors Emerging Markets Equity Review & Outlook 2013
THE CASE FOR EMERGING MARKET EQUITY SMALL CAPS
1. Small cap stocks have greater exposure to domestic growth within Emerging Markets
2 Small cap stocks trade at cheaper m ltiples and ha e s perior long term gro th2. Small cap stocks trade at cheaper multiples and have superior long-term growth prospects / superior long term returns expected
3 The asset class is under researched and less efficient We believe this allows for the3. The asset class is under researched, and less efficient. We believe this allows for the achievement of higher relative returns over the long term
4. In a period of increasing global correlation, Emerging Market Equity Small Caps offer4. In a period of increasing global correlation, Emerging Market Equity Small Caps offer diversification
16
S C S O OS O G G G OAviva Investors Emerging Markets Equity Review & Outlook 2013
SMALL CAPS OFFER EXPOSURE TO EMERGING MARKET GROWTHTHE ACCELERATING PACE OF URBANISATION
I f t t di f t f E i M k tUrban Population vs GDP per capita
9
10
Infrastructure spending forecast for Emerging Markets (USD tn)
5
6
7
8
1
2
3
4
0
1
China
India
Russia
Brazil
Indonsia
Mexico
Saudi A
rabi
South A
frica
UA
E
Other
– The growth of GDP per capita and that of an urban population are intrinsically linked– Urbanisation requires a step change in infrastructure investment
ia a
Urbanisation requires a step change in infrastructure investment– Emerging Markets are struggling to keep pace with their populations demands for better infrastructure
Exposure to the Emerging Markets key investment needs
Source. Bloomberg, United Nations Population Division, Credit Suisse, Dow Jones, Morgan Stanley September 201217
S C S O OS O G G G OAviva Investors Emerging Markets Equity Review & Outlook 2013
SMALL CAPS OFFER EXPOSURE TO EMERGING MARKET GROWTHACCESS TO DOMESTIC DEMAND
25%
30%
– Small caps have greater exposure to the themes of growing domestic demand such as:
20%
– Increased urbanisation– Rising income levels – Consumer goods and services
Healthcare
10%
15%– Healthcare– Infrastructure– Industrials
5%– By comparison, large caps are dominated by
energy and commodities
0%
Large Cap Small Cap
A more targeted approach to emerging market growth
Source: Factset, MSCI September 2012. 18
SMALL CAPS ARE UNDER RESEARCHEDAviva Investors Emerging Markets Equity Review & Outlook 2013
SMALL CAPS ARE UNDER RESEARCHEDINFORMATION DISCOVERY LEADS TO GREATER RETURNS
Analyst coverage Large cap Small capNo. of companies 821 1,902p ,
Analysts per stock 14 4
Stocks with no analyst coverage 43 667
Stocks with 2 or less analysts 68 907Stocks with 2 or less analysts 68 907
Analyst coverage is focused on the mega cap space– Analyst coverage is focused on the mega cap space
– Analyst coverage is shallow and rapidly falls away
– Nearly 40% of small caps in emerging markets did not have any coverage as at January 2012
Market inefficiencies create long term investment opportunities
Source: Factset, January 2012 19
EMERGING MARKET SMALL CAPSAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET SMALL CAPSA NARROWING DISCOUNT
2
2.5
3
S ll C
1
1.5
2 Small Cap
0
0
0.5
2005 2006 2007 2008 2009 2010 2011 2012
Large Cap
-0.3
-0.2
-0.1 P/B Discount
-0.5
-0.4
– Emerging Market Small Caps still trade at a discount to Large Caps
– The discount to larger market cap companies is gradually decreasing
Emerging market small cap stocks trade at an unjustified discount to large caps
The discount to larger market cap companies is gradually decreasing
– In developed markets small cap indices traditionally trade at a premium to large cap
Source: Factset/Bloomberg, as at May 2013. 20
EMERGING MARKET SMALL CAPSAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET SMALL CAPSLOWER REALISED VOLATILITYHistoric Realised 1 Year Volatility
35.00
40.00
25.00
30.00
EM Small Cap
15 00
20.00
EM
DM Small Cap
DM
10.00
15.00
– Emerging Market Small Caps have recently experienced significantly lower volatility than other broad indices
Unlike in developed markets emerging market small caps are less volatile than their larger peers
5.00 2008 2009 2010 2011 2012 2013
Emerging market small cap stocks trade at an unjustified discount to large caps
– Unlike in developed markets, emerging market small caps are less volatile than their larger peers
– Volatility has substantially reduced since the credit crisis
Source: Bloomberg/MSCI, as at May 2013.
Emerging market small cap stocks trade at an unjustified discount to large caps
21
SMALL CAPS OFFER DIVERSIFICATIONAviva Investors Emerging Markets Equity Review & Outlook 2013
SMALL CAPS OFFER DIVERSIFICATIONAN OPPORTUNITY TO REDUCE RISK
MSCI Investment Universe
Emerging Market Small
Caps
Emerging Markets World North
America Europe
Emerging Market Small Caps 1
Emerging Markets 0.962 1
World 0.837 0.879 1
North America 0.778 0.832 0.975 1
Europe 0.811 0.855 0.961 0.890 1p
– Emerging market small caps have the lowest correlation with other major equity markets
Reduced correlation improves risk adjusted returns– Reduced correlation improves risk adjusted returns
Market inefficiencies create long term investment opportunities
Source: Bloomberg March 2013 22
Aviva Investors Emerging Markets Equity Review & Outlook 2013
3. EMERGING MARKETS EQUITY SMALL CAP FUND PROCESSCAP FUND PROCESS
23
EMERGING MARKET SMALL CAPAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET SMALL CAP INVESTMENT PROCESS
Client portfolioSmall cap investment
Quality screening
Value screening
Core fine filters
P i t– Unconstrained
– High conviction
– 40 - 80 stocks
universe
– 4,000 + companies
g
– Quality filter. scores companies for:
g
– Valuations:
– P/E
– Earnings t
– Proprietary Research
– Company Meetings
I d th– Profitability
– Growth
– Spending efficiency
momentum
– Price momentum
– Filters i t
– In-depth Analysis
y
– Sustainability
– Persistency
universe to 100 - 150 stocks
– Our primary source of alpha is our in-house, bespoke research:– Emerging market small cap universe is under-researched
Our proprietary research is augmented by selected independent third-party research– Our proprietary research is augmented by selected independent third-party research
Rigorous process combining quantitative filters with bottom-up stock picking
24
Aviva Investors Emerging Markets Equity Review & Outlook 2013
FUNDAMENTAL ANALYSISFUNDAMENTAL ANALYSISINVESTMENTS ARE ANALYSED ON AN INDIVIDUAL BASIS
We look for factors that affect the long term potential of a business:
Att ti b i d l- Attractive business model
- Quality of management and alignment with shareholder objectives
- Accounting quality and practices
- Balance sheet strength
- Cash flow existence, stability and growth
Undervalued- Undervalued
In-depth company analysis
25Source: Aviva Investors
Aviva Investors Emerging Markets Equity Review & Outlook 2013
FUNDAMENTAL ANALYSISFUNDAMENTAL ANALYSISINVESTMENTS ARE ANALYSED ON AN INDIVIDUAL BASIS
– An in-depth report is produced on all investments
In-depth company analysis
– The underlying business model and industry dynamics are analysed in detail
26Source: Aviva Investors
Aviva Investors Emerging Markets Equity Review & Outlook 2013
MACRO INPUTMACRO INPUTCOUNTRY EFFECTS HAVE GREATER INFLUENCE IN EMERGING MARKETS
Developed Markets Emerging Markets
60
70
60
70
30
40
50
30
40
50
10
20
10
20
092 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Region Country Sector Industry
092 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
Region Country Sector Industry
– Emerging markets are influenced by country factors to a greater degree than developed markets.
– We ensure that our portfolio construction coherently addresses macro factors.
We invest in companies but build portfolios that will last
Macro factors are given due consideration in portfolio construction
– We invest in companies, but build portfolios that will last.
Source: Empirical Research, February 2013 27
PORTFOLIO CONSTRUCTIONAviva Investors Emerging Markets Equity Review & Outlook 2013
PORTFOLIO CONSTRUCTION
- 40 – 80 Holdings
T 2/3 d f f li i i d $2b k- Target 2/3rds of portfolio in companies under $2bn market cap
- Valuation below that of the MSCI Emerging Market Small Cap Index
- Balanced target beta range 0.90 to 1.10
- Average position size 1.5%
- No holding >5.0%
- No Sector or Country deviation >10% of MSCI Emerging Market Small Cap Index weighty g g p g
- Target tracking error range 4-8%
1 to 3 year investment horizon ensures low turnover- 1 to 3 year investment horizon ensures low turnover
28There is no guarantee that the projected returns will be achieved.
Aviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY SMALL CAP FUNDEMERGING MARKET EQUITY SMALL CAP FUNDPORTFOLIO CONSTRUCTION
Region No. of Stocks % of Fund % Index
Asia 37 69 74
EMEA 12 19 14
L i A i 6 10 12
Active sector weights (%)Top active country weights (%)
Latin America 6 10 12
Total 55 100 100
g ( )p y g ( )
4 08
4.67
6.55
Health Care
Information Technology
Consumer Discretionary
3 02
4.04
5.98
Philippines
Thailand
Turkey
-1.40
-0.95
0.24
4.08
Energy
Telecommunication Services
Industrials
Health Care
-2.13
2.76
3.00
3.02
India
Russia
Mexico
Philippines
5 77
-2.92
-2.57
-1.93
Materials
Utilities
Consumer Staples
Financials
8 41
-5.79
-2.76
-2.69
Taiwan
Hong Kong
Brazil
Indonesia
Diversified portfolio across region, country and sector
-5.77Materials-8.41Taiwan
Source: Aviva Investors, 30 April 2013 29
Aviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY SMALL CAP FUND
Top 10 weights (%)
EMERGING MARKET EQUITY SMALL CAP FUNDPORTFOLIO CONSTRUCTION
Liquidity Analysis – % of portfolio to cash by Top 10 weights (%)
12%
9%
6%
0 3
< 0.2
< 0.1
number of days required
4.40
4.84
GS Home Shopping Inc.
Filinvest Land Inc.
27%
17%
14%
12%
< 1
< 0.5
< 0.4
< 0.3
3.58
3.60
3.93
Intelligent Digital Integrated Security
Sungwoo Hitech Co. Ltd.
Turk Traktor ve Ziraat Makineleri A.S.
Qualitas Controladora S.A.B. de C.V.
61%
53%
42%
< 4
< 3
< 2
2 80
2.87
2.92
3.22
H iti I t ti l H ldi Ltd
Life Healthcare Group Holdings Ltd.
KPJ Healthcare Bhd
Intelligent Digital Integrated Security Co. Ltd.
79%
66%
< 10
< 5
N t t b t >10%
2.75
2.80
DGB Financial Group Co. Ltd.
Haitian International Holdings Ltd.
– No sector or country bet >10%
– Concentrated stock specific bets however no individual position greater than 5%
– 80% of portfolio realisable within 10 days, 50% within 3 days in a traditionally illiquid asset class
Carefully managed risk
80% of portfolio realisable within 10 days, 50% within 3 days in a traditionally illiquid asset class
Source: Aviva Investors, 30 April 2013 30Source: Aviva Investors, 28 February 2013
Aviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKET EQUITY SMALL CAP FUNDEMERGING MARKET EQUITY SMALL CAP FUND INVESTMENT APPROACH
– Global Emerging Market Small Cap strategy William BallardFund manager, Emerging Markets
– Quality and Value focus
– A focused, unconstrained portfolio of high-conviction positions
Aviva Investors Emerging Market Small Cap fundMSCI Global Emerging Markets Small
Investment experience: 13yrs
conviction positions
– Robust risk management practices
Low turnover due to 1 3 year investment
Benchmark MSCI Global Emerging Markets Small Cap index
Fund/strategy Size USD 142m as at 28 February 2013
Target Alpha 3% p.a. over rolling 3 year periods– Low turnover due to 1-3 year investment
horizon
– A niche product. One of the few EM Small C f d
Target tracking error 4-8%
Typical number of stocks 40-80
Max. active stock weights 10%Cap funds
g
Min. market cap No min.
Max. market cap Min: 2/3rds of portfolio <$2bn market cap
Source: Aviva Investors, 28 February 2013. There is no guarantee that the projected returns will be achieved. 31
Aviva Investors Emerging Markets Equity Review & Outlook 2013
5. APPENDICES
32
BIOGRAPHIESAviva Investors Emerging Markets Equity Review & Outlook 2013
BIOGRAPHIES
Jerome NunanClient Portfolio Manager, Equities
Will BallardEmerging Markets Fund Manager q
Joined the investment industry in 1998 and Aviva Investors in 2009
Jerome bridges the investment and distribution teams
g
Joined the investment industry in 2000 and Aviva Investors in 2009
Will is responsible for fund management in emerging Jerome bridges the investment and distribution teams, supporting clients and the distribution process.
Prior to joining Aviva, Jerome spent eight years at Deutsche Bank, working in Global Equities. Previously he
k d f fi i l lt fi d hi fi t j b
Will is responsible for fund management in emerging markets
Will previously worked at the Royal Bank of Canada in their Global Arbitrage Trading division. Prior to this role he was a fund manager at Henderson Global Investors on their Pan worked for a financial consultancy firm, and his first job
was in the British Army, where he served for 10 years in the Royal Tank Regiment
Jerome holds a BA (Hons) in Modern Languages from the University of East Anglia and a MBA from Cranfield
fund manager at Henderson Global Investors on their Pan European Equity Multi-strategy team.
Will holds an MA (Hons) from Cambridge University. He also holds the Investment Management Certificate and is a CFA charter holder University of East Anglia and a MBA from Cranfield
University, School of ManagementCFA charter holder.
33
EMERGING MARKETS EQUITY TEAMAviva Investors Emerging Markets Equity Review & Outlook 2013
EMERGING MARKETS EQUITY TEAMSOME PRESTIGIOUS AWARDS
European Convergence Fund
Winner of 2009 Lipper Fund Awards Taiwan, Singapore – Aviva Funds Emerging Markets Equity P1 - best
Emerging Markets Small Cap
2012 winner in the Equity Global Emerging Markets best fund over 3 years category
Emerging Markets Small Cap
2010 winner in the Emerging Markets Equity category by the Expansión/Interactive Data Funds g g q y
fund over 3 and 5 years in the ‘Equity Global Emerging Markets’ sector
y g y pAwards
Other recent awards:
European Convergence Fund: Winner of 2010 Morningstar LibreBelgique De Standaard in theBelgique De Standaard in the ‘Equities Emerging Markets’ sector
Winner of 2009 FondsProfessionell/Die Presse Awards –3 year performance and 5 year performance
Emerging Markets Equity
Winner of 2009 ‘Best of the Best’ for the ‘Most Innovative Product –Singapore’ category
European Convergence Fund
Winner of 2010 Les Victoires des SICAV Vainquer France, La Tribune/Morningstar in the Emerging Europe Equity category performanceEmerging Europe Equity category
Past performance is not a guide to future performance 34
IMPORTANT INFORMATIONAviva Investors Emerging Markets Equity Review & Outlook 2013
IMPORTANT INFORMATIONThis document is for Professional Clients only. It is not to be viewed by or used with retail clients. The information provided in this document and any appendix is confidential and should only be used for the purposes requested.
Except where stated as otherwise, the source of all information is Aviva Investors as at 31 March 2013.
Aviva Investors Emerging Market Small Cap Fund (“the Fund”) is a sub-fund of Aviva Investors SICAV, an open-ended investment company incorporated as a Société d'Investissement à Capital Variable in Luxembourg. It is authorised by the Commission de Surveillance du Secteur Financier (CSSF) and qualifies as an Undertaking for Collective Investment in Transferable Securities (UCITS) under Part I of the law of 17 December 2010 relating to undertakings for collective investment. The Management Company is Aviva Investors Luxembourg. Investment Manager is Aviva Investors Global Services Limited, regulated and authorised by the FCA.
Th di t ib ti d ff i f h b t i t d b l i t i j i di ti Thi d t h ld t b t k d ti ff b iThe distribution and offering of shares may be restricted by law in certain jurisdictions. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. The distribution and offering of shares may be restricted by law in certain jurisdictions. This document should not be taken as a recommendation or offer by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. The content of this document does not purport to be representational or provide warranties above and beyond those contained in the legal documentation and subscription documentation of the Fund. The legal documentation and the subscription document contain the full terms, conditions, representations and warranties in respect of the Fund. Nothing in this document shall be construed as forming any part of those terms conditions representations or warranties The legal documentation and the subscription documents should beshall be construed as forming any part of those terms, conditions, representations or warranties. The legal documentation and the subscription documents should be read before an investment is made.
Any future returns and opinions expressed are based on the internal forecasts of Aviva Investors and should not be relied upon as indicating any guarantee of return from an investment managed by Aviva Investors. No part of this document is intended to constitute advice or recommendations of any nature. Past performance is not a guarantee of future returns.
The value of an investment and any income from it may go down as well as up and the investor may not get back the original amount investedThe value of an investment and any income from it may go down as well as up and the investor may not get back the original amount invested.
Information about specific securities should not be construed as a recommendation to buy or sell any securities.
IMPORTANT INFORMATION HONG KONG: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. It is not intended to constitute, and under no circumstances should it be construed as, an offer or invitation to anyone to invest in any products, an offer of or solicitation for services, or an advice on any products, services or investment, associated with Aviva Investors Asia Pte Ltd. If Investors are in any doubt about any of the contents of this document they should obtain independent professional advice This document is not being distributed in Hong Kong other than (1) to "professional investors" withindocument, they should obtain independent professional advice. This document is not being distributed in Hong Kong other than (1) to professional investors within the meaning of the Securities and Futures Ordinance (Cap. 571) of Hong Kong (the "SFO") and any rules made under the SFO; or (2) in other circumstances which do not result in the document being a "prospectus" as defined in the Companies Ordinance (Cap. 32) of Hong Kong (the "CO") or which do not constitute an offer to the public within the meaning of the CO. No action has been taken, in Hong Kong or elsewhere, to permit the distribution of this document to the public of Hong Kong or in a manner in which this document may be accessed or read by the public of Hong Kong (except if permitted to do so under the securities laws of Hong Kong). This document is distributed on a confidential basis.
Aviva Investors Asia Pte. Limited, a company incorporated under the laws of Singapore with registration number 200813519W, holds a valid Capital Markets Services Licence to carry out fund management activities issued under the Securities and Futures Act (Singapore Statute Cap. 289) and is an Exempt Financial Adviser for the purposes of the Financial Advisers Act (Singapore Statute Cap. 110).Registered Office: 6 Temasek Boulevard, #32-08 Suntec Tower 4, Singapore 038986.
13/0330/30062013-20130509_01
35
THANK YOU