Wasatch Emerging Markets Select Fund Institutional (WIESX)

Overview

The investment strategy primarily focuses on equities tied economically to emerging market countries, catering to investors looking to diversify their portfolio with exposure to these fast-growing economies. By investing at least 80% of its net assets plus borrowed funds in the equity securities of companies that are economically linked to emerging markets, the fund seeks to capitalize on the potential high growth rates of these regions. The strategy indicates a willingness to concentrate investments in a handful of sectors that the fund managers believe offer the best growth prospects, albeit with a non-diversified status that may involve higher risk and volatility.

Products and Services

• Equity Securities of Emerging Market Companies: The fund focuses on investing in stocks of companies that are economically tied to emerging markets. This encompasses a wide range of industries and sectors, intending to leverage the growth potential of these markets. By doing so, the fund offers investors an avenue to partake in the dynamic and potentially high-growth economies beyond more developed regions.
• Sector-focused Investments: Although the fund invests across various sectors, it may allocate a large portion of its assets to sectors that its managers believe have high growth potential. These sectors include:
  • Health Care: Investing in health care companies in emerging markets can offer exposure to the increasing demand for medical services and pharmaceuticals in these regions.
  • Industrials: The fund may invest in the industrial sector of emerging economies, which is often crucial for the infrastructure and manufacturing growth in these countries.
  • Consumer Discretionary: This area includes companies related to non-essential goods and services, which tend to grow as disposable incomes in emerging markets increase.
  • Information Technology: The IT sector in emerging markets presents opportunities to invest in companies that are at the forefront of innovation and technology adoption.
  • Financials: The financial sector, encompassing banks, investment companies, insurance companies, etc., in emerging markets, can benefit from increasing financial inclusion and services demand.
• Non-diversified Fund Structure: As a non-diversified fund, it may invest more heavily in fewer sectors or companies, potentially leading to higher volatility and risk. This approach allows the fund to make significant bets on companies and sectors that it believes will outperform, offering the potential for higher returns.