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February 13, 2020Emerging Markets Equity: Harnessing Growth (2:12)
David Semple
David Semple
Portfolio Manager, Emerging Markets Equity Strategy

Focus on Visible and Persistent Growth: Structural Growth

The VanEck Emerging Markets Strategy focuses on visible and persistent growth within emerging markets. That's what we call structural growth. Structural growth, but at a reasonable price. [GARP] So, visible and persistent growth in a “GARP”y format.

Stock Selection Drives Alpha

When we look for that visible and persistent growth, we focus on stock selection: stock selection first and foremost, because that's what's really the best place to look for alpha in emerging markets.

We have a very engaged portfolio management team. We spend a lot of time with management of our companies, and we try and find the very best that we can find in emerging markets focused on that structural growth.

Sometimes you're defined by what you don't do. What we don't do is the highly cyclical parts of emerging markets. So, from us, you can expect us to have very low weightings in these highly cyclical industries, commodity equities for instance, and to have much more of a focus on areas like healthcare, education, Internet, those types of sectors within emerging markets.

Invest in the Future of Emerging Markets Today

We're really looking for companies that are very idiosyncratic, related to the country, and are very much predicated on domestic demand, which is the future of emerging markets.

When we look at these smaller domestic demand stocks, highly idiosyncratic, there's an ability to really find some very, very good business models, management, and very attractive sectors and industries within emerging markets, all within the context of our overriding philosophy, which is structural growth at a reasonable price.


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