Most people agree that there is opportunity in emerging markets, but few investors have meaningful allocations there. Why? Volatility is scary and emerging markets are notorious for volatility. Cutler sought to change this by applying our time tested process which focuses on dividend longevity as a way to access the growth potential while aiming to smooth the ups and downs. A simple idea with profound implications.
While Cutler's domestic equity investment process uses a 10-year dividend history, for Emerging Markets we look to a 15-year track record of dividend payments. If a company misses consecutive annual payments, they are removed from our investable universe. In addition to fundamental analysis, we apply macro-economic screens. We look for geo-political and currency risk as criteria for country weightings. ETFs and ADRs are occasionally included for liquidity, but the portfolio consists predominantly of local securities in foreign markets.
|Benchmark||MSCI Emerging Markets Index|
|# of Positions||70|
|Mgmt. Team Avg. Experience||20 Years|
|PORTFOLIO WEIGHTING %|
|China & Hong Kong||21.6|
We take great pride in the experience, education, and background of our team. We continue to build upon this great foundation, growing our team’s expertise and investment experience. Our strength is our diversity of thought and our ability to form consensus using these different points of view.