Marlborough Emerging Markets Trust A Inc

The Marlborough Emerging Markets Trust invests in the growth potential of the world’s developing economies through exposure to direct Asian equities and a portfolio of investment trusts and ETFs covering other emerging markets.

In selecting direct Asian equities, the managers are free to hold companies of all sizes and they use an investment process that integrates top-down, bottom-up and thematic approaches. Asset allocation decisions are based on a range of factors including economic environment, political outlook, market valuations and risk analysis.

Stock selection

These assessments, integrated with investment themes identified by the team, will then inform individual stock selection. In identifying opportunities, the team will also consider valuation, management quality, information from company visits and how a business aligns with their investment themes.

Investment trusts and ETFs

In selecting investment trusts and ETFs for exposure to emerging markets outside Asia, the managers draw on Marlborough’s fund of funds expertise.

They establish the fund’s asset allocation, then sub-benchmarks for each area and the market capitalisation and style bias for this section of the portfolio. Individual holdings are then selected using quantitative and qualitative analysis.

Risk management

In managing risk, the team play close attention to the quality of company management, listing location, liquidity and intra-portfolio correlations.

Risk Warning: The value of investments and the income from them may fall as well as rise and you may not get back the amount you originally invested. Changes in exchange rates may cause the value of the fund to rise or fall. The Fund invests in less developed overseas markets which may be less liquid and more volatile than more developed markets.