Avantis Emerging Markets Equity UCITS ETF

Issuer: American Century Investments

Asset Class: Equity

TER: 33bps

Trading Currency: USD

Pays Income: False

Listing Date: 19 Dec 2024

Ticker: AVEM

ISIN: IE000K975W13

This fund is designed to achieve long-term capital appreciation by investing in a diversified portfolio of equity securities from companies located in emerging market countries. As an actively managed strategy, it does not seek to replicate an index. Instead, the investment manager employs a systematic, research-driven approach to identify companies with higher expected returns. The core of the strategy is to focus on firms demonstrating strong fundamental characteristics, particularly high profitability and attractive valuation metrics. This disciplined process aims to build a robust portfolio that captures the growth potential inherent in emerging economies while emphasizing quality and value factors.

The portfolio construction is broadly diversified across numerous countries, sectors, and industries within the emerging market universe, which helps to mitigate concentration risk. The manager systematically evaluates securities and may overweight those with stronger value and profitability profiles compared to their peers. This active management allows for greater flexibility in responding to evolving market conditions and capitalizing on investment opportunities that a passive, index-tracking approach might miss. The fund's methodology combines the latest academic research on asset pricing with practical, real-world portfolio management to create a balanced exposure to the targeted return drivers.

For investors seeking a core holding to access the dynamic growth of emerging markets, this fund offers a compelling solution. Its factor-based, active approach is structured to potentially deliver superior long-term performance relative to traditional market-cap-weighted benchmarks. The focus on financially sound companies may also provide a degree of downside protection during periods of market stress. It is well-suited for investors with a long-term investment horizon who are comfortable with the inherent volatility of emerging markets and who value an active strategy grounded in financial science.