QEP Emerging Markets

Investment Objective

The QEP Emerging Markets strategy seeks to produce a long run return of +3% per annum (gross of fees) above the MSCI Emerging Markets Index, measured over a full market cycle.


QEP Emerging Markets is an index-unconstrained strategy designed to deliver higher long-run returns than the market. Analyzing a universe of 5,000 stocks across more than 27 emerging countries, the team constructs a highly diversified portfolio typically containing over 300 stocks.

Stock selection for this strategy is grounded in the analysis of company fundamentals indicating Value and Quality. The advantage of investing in both Value and Quality is that, while both tend to outperform over time, they deliver their returns at different stages of the economic cycle, creating the potential for outperformance across a broad range of market environments.

We believe that intelligent portfolio construction can greatly enhance the ability to generate repeatable long-run returns. We reduce stock specific risk by building a highly diversified portfolio, but with conviction in every single stock. Recognizing the limitations of market cap-weighted indices, we take an index-unconstrained approach which enables us to invest wherever we find the best Value or Quality opportunities and to capitalize upon those which may be missed by other managers, including those at the lower end of the market cap spectrum.