TSW Emerging Markets Institutional Fund (TSWMX)

Overview

The fund is an investment vehicle that primarily focuses on investing in equity securities of companies based in emerging market countries, including those classified as frontier markets. It operates with the mandate to allocate at least 80% of its net assets—along with any borrowings intended for investment purposes—toward such equities. This positioning allows the fund to capture the growth potential and dynamic changes occurring in these regions, potentially offering higher returns compared to more developed markets. The emerging and frontier markets are characterized by their rapid economic development and increased participation in the global economy, making them attractive for investors seeking diversification and growth.

Products and Services

The fund offers diverse investment opportunities focusing on emerging and frontier markets, detailed as follows:

• Equity Securities Investments: The core service involves investing in equity securities of companies located in emerging and frontier markets. This can range from stocks in small to large companies, aiming to leverage the economic growth and market dynamics of these regions for potential returns.
• Unaffiliated Investment Companies: The fund may invest in unaffiliated investment companies, including exchange-traded funds (ETFs). This approach provides flexibility and access to a broad range of securities, enhancing diversification and potentially reducing exposure to risk associated with investing in a single security or market.
• Real Estate Investment Trusts (REITs): A portion of the fund's assets may be allocated to REITs. Investing in REITs offers exposure to the real estate sector of emerging markets, a pivotal component of these economies. It also provides an income component through dividends, complementing the growth-oriented nature of equity investments.
• Concentration in Specific Geographies: While the fund's investments span across various emerging and frontier markets, it may choose to invest a significant portion of its assets in one country or a small number of countries. This strategy could capitalize on specific regional growth trends, although it also adds a higher level of risk due to the concentration in less diversified markets.