During the third quarter, the Harbor Emerging Markets Select ETF returned 6.17% (NAV), underperforming the benchmark, the MSCI Emerging Markets Index, which returned 10.64%. The weight in China increased significantly during the third quarter on the back of easing concerns around growth. Despite the strong run year to date in EM equities, we remain positive about the opportunity set.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| SA Selman Akyol Stifel | 6,695.33 | $187,516.11 | $197,244.43 | $9,728.32 | 5.19% |
| ARCA Exchange | US Country |
The Harbor Emerging Markets Select ETF (EMES) is an actively managed exchange-traded fund designed to achieve long-term capital appreciation through strategic investments in equities within emerging markets. This fund is managed by C WorldWide Asset Management, focusing on a concentrated, all-cap strategy. The investment approach is centered around identifying companies that are expected to thrive from significant thematic trends, including the rise of the emerging market consumer, advancements in financial inclusion, and the transition towards clean energy solutions. A key feature of EMES is its limitation of holdings to a maximum of 50 positions, which enhances the emphasis on a high-conviction, bottom-up investment strategy.
EMES invests primarily in equities from emerging markets, harnessing the growth potential of rapidly developing economies. By selecting companies that are well-positioned to benefit from economic and demographic shifts, the fund aims to achieve robust capital appreciation over the long term.
The fund employs an active management approach which enables portfolio managers to make informed investment decisions based on comprehensive analysis and market research. This strategy allows for flexibility in adapting to changing market conditions and seizing opportunities as they arise.
With a maximum of 50 holdings, EMES adopts a concentrated investment strategy that facilitates higher conviction in each selected position. This focus on quality over quantity allows the fund to invest deeply in companies it believes will outperform market expectations.
The fund targets thematic tailwinds that can drive company growth, including trends like financial inclusion, the burgeoning emerging market consumer base, and the clean energy transition. By concentrating on these themes, EMES aims to capitalize on transformative shifts within the global landscape.
EMES employs a bottom-up investment philosophy, where decisions are grounded in the fundamental analysis of individual companies. This approach seeks to uncover value at the company level, focusing on factors such as management quality, competitive positioning, and long-term growth prospects.