Barings' International Small Cap Equity Strategy Marks Five Years of Outperformance
- Established team with an average of 16 years investment experience(1)
- Bottom-up GARP philosophy
BOSTON, July 28, 2014 /PRNewswire/ -- Baring Asset Management is proud to announce that as of May 31, 2014 its International Small Cap Equity strategy has not only reached its five year milestone, but also has outperformed its benchmark index over the following one-, three- and five-year periods.
Portfolio Managers Nick Williams, Rosie Simmonds and Colin Riddles aim to build a balanced portfolio of mispriced international smaller companies with the potential for positive earnings surprises. The team looks for companies with quality management that should deliver expectation-beating returns through operational excellence and value-enhancing use of their balance sheets.
Rosie addresses the current market environment for international small cap equities and shares her outlook on the asset class in the following video: Click here
Nick comments: "Despite the recent strong share price rises in equity markets, we believe that the international small company universe continues to offer attractive investment opportunities. The economic environment appears to be steadily improving, and history indicates that improving economic conditions tend to support the relative performance of smaller companies. So the combination of picking attractive stock opportunities and an improving economic backdrop makes this an exciting time for small-cap investing."
Please see below for GIPS performance to June 30th.
Rosie added: "We believe that an active approach to investing in international small cap stocks offers several advantages over passively managed strategies. The MSCI EAFE Small Cap index contains more than 2,000 constituents, making it difficult for passive managers to accurately replicate the index. A good active manager can take advantage of that diversification, selecting the best investment ideas from among the benchmark and non-benchmark companies. Therefore, the active manager can follow his or her conviction and build a portfolio of the best ideas for clients."
The International Small Cap Equity strategy, available to qualified institutional investors, typically invests in 80-110 securities organized, headquartered or domiciled in any country included in the MSCI EAFE Small Cap index. The strategy can opportunistically invest in countries outside the index, up to 20 percent in emerging markets.
| Baring Asset Management |
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| Composite |
International Equity: Small Cap |
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| Benchmark |
MSCI EAFE Small Cap Total Return Index with Gross Dividends Reinvested until 30-Jun-12. Then MSCI EAFE Small Cap Total Return Index with Net Dividends Reinvested. (Due to change in underlying account benchmark) |
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| Reporting Ccy. |
USD |
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| Date |
30-Jun-14 |
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| Ending - 30 Jun 14 |
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| Performance Summary |
3 Months |
1 Year |
3 Years (Ann.) |
5 Years (Ann.) |
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| Composite - Gross Of Investment Management Fees |
0.72 |
27.78 |
14.94 |
18.68 |
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| Composite - Net Of Investment Management Fees |
0.51 |
26.69 |
13.96 |
17.67 |
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| Benchmark |
2.08 |
29.08 |
9.97 |
15.43 |
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| The firm, as defined herein, claims compliance with the Global Investment Performance Standards (GIPS®). A complete list and description of all composites, along with Compliant Presentations are available on request by sending an e-mail to [email protected]. |
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| For the purpose of GIPS compliance, the "Firm" is defined as the investment firm Baring Asset Management Limited (and its relevant subsidiaries which are registered with the appropriate regulatory authorities to undertake investment business in those jurisdictions in which they operate). Baring Asset Management Korea Limited, a wholly owned subsidiary of Baring Asset Management (Asia) Limited, which is in turn a wholly owned indirect subsidiary of Baring Asset Management Limited, is excluded from the Firm definition. |
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| The Composite is comprised of accounts which invest in small cap EAFE equities, principally within the stated index. Accounts within the composite are permitted to use futures or ETF's for efficient portfolio management purposes. Accounts within the composite are run within an ex-ante tracking error range of 3 - 9. |
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| As at the reporting date all portfolios in the composite reinvest capital gains and income (including dividends and other earnings). |
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| Benchmark Source: MSCI |
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(1) Source: Barings, as of June 30th, 2014
IMPORTANT INFORMATION - BARING ASSET MANAGEMENT
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Baring Asset Management is an international investment management firm with investment skills, clients and business locations spanning world markets. Our investment competency encompasses developed and emerging market equity, fixed income and multi-asset portfolio management services offered to institutions, retail investors and private individuals. Worldwide clients include public and corporate pension plans, government agencies, financial institutions, charitable organizations, mutual funds and private individuals.
Baring Asset Management is part of the MassMutual Financial Group, a global, diversified financial services organization. Massachusetts Mutual Life Insurance Company (MassMutual) is one of the largest life insurance businesses in the USA.
This document is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management.
Issued by Baring Asset Management Limited (authorized and regulated by the Financial Conduct Authority).
This Press release includes and is based on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections. Important factors that could cause actual results to differ materially from those expectations include, among others, interest rates and fluctuations in currency exchange rates. Although Baring Asset Management believes that its expectations and the information in this press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this press release. Barings undertakes no obligation to publicly update or revise any forward-looking information or statements in the press release.
The value of investments and any income from them may go down as well as up. You may not get back all of your original investment. You should not make any assumptions about the future on the basis of this information. Past performance is not a guide to future performance.
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SOURCE Baring Asset Management
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