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FOR PROFESSIONAL INVESTORS ONLY.
We believe that these are the necessary key attributes to successfully navigate the current noisy investment landscape.
A DOMESTIC GROWTH PLAY: Our portfolio is focused on beneficiaries of domestic structural growth (e.g. demographics, e-commerce, travel). 69 out of 82 of our names are domestically driven.
RESILIENT GLOBAL WINNERS: We only invest in exporters with a sustainable competitive advantage, even after any new trade barriers, such as semiconductor manufacturers and beneficiaries of the AI revolution.
DIVERSIFIED: The Future World Fund captures secular growth tailwinds across approximately 20 countries, mitigating country-specific economic and political risks.
ACCELERATING GDP GROWTH: Expected for certain markets, such as Saudi Arabia and South Africa. Periphery Europe (Greece, Poland) is expected to grow at 2-3x the rate of the Eurozone. Asian markets, such as Indonesia, India and the Philippines, are expected to still grow at 5%+.
VALUATIONS AT HISTORICAL LOWS: Emerging Markets have never been this cheap versus Developed Markets.
Source: Alquity, as of 31st March 2025. For informational purposes only – should not be solely relied upon for investment or financial decisions.
The companies mentioned above are provided for information purposes only, are subject to change and are not a recommendation to buy any particular company.
44% of our holdings aren’t in the index. We
unlock growth with a multi-cap strategy that
prioritises quality companies across Emerging
and Frontier Markets, regardless of size or index
inclusion (Figure 1).
Figure 1: Our multi-cap strategy
Data as of 31st March 2025
We focus on attractively valued, quality businesses with sustainable competitive advantages, offering faster earnings growth and greater profitability than the EM index (Figure 3).
Figure 2: We focus on quality growth companies
Figure 3: Strong and consistent performance
Data as of 31st March 2025. *Since the investment process changes took place. The percentile numbers provided here pertain to the EM equity universe within the Lipper classification.
Figure 4: EM to DM index trailing P/B ratio
Data as of 31st March 2025. The valuations presented here are for informational purposes only and should not be solely relied upon for investment or financial decisions.
Led by Mike Sell, Head of Global
Emerging Markets, who joined
Alquity in 2014 and has over 25
years of experience investing in
Emerging Markets.
Marnie Aragon-Uy, who became
part of the team in 2019, has
over 25 years of experience in
investing. Marnie is co-manager of
the Fund, and has been responsible
for refining Alquity’s risk and
volatility profile, leading to
improved risk-adjusted returns.
Kieron Kader, Associate
Portfolio Manager, joined Alquity
in 2019 and has over 9 years
of experience investing in
Emerging Markets.
Daniel Billis, Associate Portfolio
Manager, came on board in
2018 and has over 6 years
of experience investing in
Emerging Markets.
Sources
Sources: Bloomberg, Alquity (EM vs DM valuations, as of 31st March 2025), Bloomberg (GDP Growth rates expected for 2025, as of 31st March 2025), Alquity (Relative water and GHG intensity to index, 100% coverage including 80% reported and 20% estimated, as of 31st December 2024), Alquity,
Bloomberg and Lipper (index, ETF, and performance data as of 31st March 2025), Alquity (portfolio data, as of 31st March 2025), Alquity, Bloomberg
(portfolio characteristics data, market capitalisation data, as of 31st March 2025).
Disclaimer
The information in this document (this “Document”) is for discussion purposes only. This Document does not constitute an offer to sell, or a
solicitation of an offer to acquire, an investment (an “Interest”) in any of the funds discussed herein. This Document is not intended to be, nor
should it be construed or used as, investment, tax or legal advice. This Document does not constitute any recommendation or opinion regarding
the appropriateness or suitability of an Interest for any prospective investor. This material is for distribution to Professional Clients only, as defined
under the Financial Conduct Authority’s (“FCA”) conduct of business rules, and should not be relied upon by any other persons. Issued by Alquity
Investment Management Limited, which is authorised and regulated in the United Kingdom by the FCA and operates in the United States as an
“exempt reporting adviser” in reliance on the exemption in Section 203(m) of the United States Investment Advisers Act of 1940.
The Alquity Asia Fund, the Alquity Future World Fund, the Alquity Indian Subcontinent Fund and the Alquity Global Impact Fund are all sub-funds
of the Alquity SICAV (“the Fund”) which is a UCITS Fund and is a recognised collective investment scheme for the purposes of the Financial Services
and Markets Act 2000 of the United Kingdom (the “FSMA”). This does not mean the product is suitable for all investors and as the Fund is invested
in emerging market equities, investors may not get back the full amount invested. This Document is qualified in its entirety by the information
contained in the Fund’s prospectus and other operative documents (collectively, the “Offering Documents”). Any offer or solicitation may be made
only by the delivery of the Offering Documents. Before making an investment decision with respect to the Fund, prospective investors are advised
to read the Offering Documents carefully, which contains important information, including a description of the Fund’s risks, conflicts of interest,
investment programme, fees, expenses, redemption/withdrawal limitations, standard of care and exculpation, etc. Prospective investors should also
consult with their tax and financial advisors as well as legal counsel. This Document does not take into account the particular investment objectives,
restrictions, or financial, legal or tax situation of any specific prospective investor, and an investment in the Fund may not be suitable for many
prospective investors. An investment in the Fund is speculative and involves a high degree of risk. Performance may vary substantially from year
to year and even from month to month. Withdrawals/redemptions and transfers of Interests are restricted. Investors must be prepared to lose their
entire investment, and without any ability to redeem or withdraw so as to limit losses. References to indices herein are for informational and general
comparative purposes only. There will be significant differences between such indices and the investment programme of the Fund. The Fund will
not invest in all (or any material portion) of the securities, industries or strategies represented by such indices. Comparisons to indices have inherent
limitations and nothing herein is intended to suggest or otherwise imply that the Fund will, or are likely to, achieve returns, volatility or other results
similar to such indices. Indices are unmanaged and do not reflect the result of management fees, performance-based allocations and other fees
and expenses. All Fund performance results presented herein are unaudited and should not be regarded as final until audited financial statements
are issued. Past performance is not necessarily indicative of future results. All performance results are based on the NAV of fee paying investors
only and are presented net of management fees, brokerage commissions, administrative expenses, and accrued performance allocation, if any, and
include the reinvestment of all dividends, interest, and capital gains. Net returns shown herein reflect those of an investor admitted at inception of
the Fund, and are representative of a regular shareholder, net of applicable expenses and reflect reinvestment of dividends and interest. In the future,
the Fund may offer share in the Fund with different fee and expense structures. The value of the fund may be significantly affected by fluctuations
in foreign exchange rates. Currency exchange rate movements can lead to an increase or decrease in the value of the fund’s investments. The Fund’s
investment approach is long-term, investors must expect to be committed to the Fund for an extended period of time (3-5 years) in order for it to
have an optimal chance of achieving its investment objectives. The performance shown in this Document is based on our I class charging structure
with an OCF of 1%.
Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied
is made regarding future performance.
This Document may not be reproduced in whole or in part, and may not be delivered to any person (other than an authorised recipient’s professional
advisors under customary undertakings of confidentiality) without the prior written consent of the Investment Manager.
SWISS INVESTORS
Units are only distributed in Switzerland to Qualified Investors. The prospectus, the Articles of Association, the Key Investor Information Document
“KIIDs” as well as the annual and semi-annual report of the Fund is available only to Qualified Investors free of charge. Funds other than the
Luxembourg domiciled Alquity SICAV mentioned in this document may not be admitted for distribution in Switzerland.
CANADIAN INVESTORS
Alquity has engaged with Stikeman Elliott LLP as their legal representation and is relying on the International Dealer Exemption in the provinces of
Quebec and Ontario. With respect to statutory rights of action along with connected and related issuer information please refer to our Canadian
Wrapper and Prospectus. This material is for distribution to Professional Clients only and does not constitute any recommendation or opinion
regarding the appropriateness or suitability of an investment for any prospective investor.
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