Emerging Markets

Emerging Markets

Objective

Seeks maximum long-term capital appreciation through investments in smaller-capitalization companies based in emerging markets.

Investment Strategy

The Oberweis Emerging Markets strategy invests principally in the common stocks of small-cap companies in developing markets that Oberweis believes have the potential for significant long-term growth in market value. The team believes that companies in emerging markets positioned to generate significant market-value growth exhibit four key attributes: strong balance sheets, durable sales growth driven by secular tailwinds, robust competitive advantages and seasoned, prudent management teams. Oberweis seeks to invest in companies with those attributes when they trade at attractive valuations, which the team determines by estimating future earnings, margins and free cash flows in a proprietary valuation model. We believe that patient ownership of growing, resilient firms with ample opportunities to reinvest capital at high returns generates attractive risk-adjusted results over a full market cycle. Our goal is to provide our investors an all-weather approach to emerging markets small-cap.

Benefits

The potential key benefits of the Emerging Markets strategy are:
  • Opportunity to capture growth — Emerging markets are estimated to grow 50% and 20% faster than developed nations in 2021 and 2022, respectively, and a rapidly growing middle class is expected to increase spending and consumption.
  • Diversification — Emerging markets represent almost one-quarter of international markets outside of the United States and provide further opportunity to find quality companies.
  • Potential for higher returns — Emerging markets have outperformed the broad global equity market in 13 of the last 20 calendar years.
  • Access to active portfolio management — Less efficient markets may create opportunities for active managers.
  • A long-term, disciplined investment approach — The strategy focuses on high-quality, well-capitalized companies with sustainable competitive advantages and secular growth tailwinds.
  • All-weather approach to emerging markets small-cap.

Lead Portfolio Manager(s)


Fourth Quarter 2023 Commentary
Fourth Quarter 2023
Fact Sheet

Strategy Basics

Inception Date:
Assets in Strategy:
Performance Benchmark:
Portfolio Status:
Minimum Account Size:

6/1/2018

$18.1 million (as of 3/31/2024)

MSCI Emerging Markets Small-Cap Index

Strategy open to new investors

$5 million for separate account management


Our Process

Our process rests on our firmwide commitment to uncovering and capitalizing on the persistent and recurring stock pricing inefficiencies in global equities caused by a lag in investor response to new information. This lag in recognizing the catalysts likely to positively impact future earnings growth drives the security selection across all our strategies and mutual funds. The criteria used within each product, however, can differ. This is how our investment team implements our philosophy in the Emerging Markets strategy.

For the Quarter Ended

See pricing for all funds

Performance

Calendar Years

Downloadable .pdf GIPS® Compliance Annual Disclosure Presentation for the Emerging Markets Strategy

Downloadable .xls Composite Returns on the Emerging Markets Strategy

*Inception of the Emerging Markets Small-Cap Composite is June 1, 2018.

The MSCI Emerging Markets Small-Cap Index is a free-float-adjusted market capitalization-weighted index that measures the performance of small-cap stocks in 24 emerging markets. You cannot invest directly in these indexes.

Net-of-fee composite returns are calculated using the highest model investment advisory fees applicable to portfolios within the composite. Advisory fees are disclosed in Part II of Form ADV. Performance is historical and includes the reinvestment of dividends and other income. Performance is calculated and presented in U.S. dollars. Past performance is not necessarily indicative of future results.

Oberweis Asset Management, Inc. (OAM) claims compliance with the Global Investment Performance Standards (GIPS® standards). To receive a complete list and description of Oberweis’ composites and/or a presentation that adheres to the GIPS® standards, contact Laura Dombro at 800-323-6166; write Oberweis Asset Management, Inc., 3333 Warrenville Road, Suite 500, Lisle, IL 60532; or e-mail laura.dombro@oberweis.net.

For the Quarter Ended

Source: Eikon

Country Allocation as a % of Total Net Assets.

*Country Allocation is defined using MSCI's Country Classification methodology and represents countries whose allocation in the Strategy or Index is 2% or more. Country allocations representing less than 2% are categorized in "Other Countries".

SECTOR ALLOCATION as of

Sector Weightings as a % of Total Net Assets

Top 10 Holdings as of

Source: Eikon

Top 10 Holdings as a % of Total Net Assets. Portfolio Holdings are subject to change at any time. References to specific securities should not be construed as a recommendation to buy or sell and should not be assumed profitable.

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