This year, Ariel launched new Emerging Markets Value and Emerging Markets Value Ex-China portfolios, which began trading on April 30, 2023 and May 31, 2023, respectively.
As Ariel’s leadership has methodically grown the firm, the goal has always been to expand its capabilities patiently and opportunistically with complementary strategies. This year, a dedicated emerging markets strategy became a next natural product extension for the firm.
As part of this launch, on August 10th, Ariel’s Emerging Markets Value (EMV) portfolio management team convened in New York City for cocktails and an on-the-record conversation with members of the press.
After opening remarks by Founder, Chairman, Co-CEO and CIO John W. Rogers, Jr., Global and Emerging Markets Equities Chief Investment Officer Henry Mallari-D’Auria, and Emerging Markets Value Portfolio Managers Christine Phillpotts and Vlad Byalik joined a panel, moderated by Chief Communications Officer Arielle Patrick.
The discussion tackled what Ariel’s EMV leaders consider to be common misconceptions about emerging markets countries, economies and companies, including:
“Myth” #1: That emerging markets (EMs) are the “little brothers” or “copycats” of developed market (DM) countries – adopting the same technologies, emulating DM business models or taking similar approaches to grow.
“Myth” #2: That investments in EMs—particularly in Africa—can be inherently riskier for investors than opportunities in DMs.
“Myth” #3: That the trend toward de-globalization—particularly following pandemic supply chain issues—may threaten or end the EM growth boom.
View the webinar above to hear Ariel’s portfolio managers’ outlooks on these topics, and responses to audience questions on current events, trends and opportunities investors are missing in the asset class.
In this conversation, Ariel’s emerging markets portfolio management team labels certain assumptions as “myths,” though this positioning is purely based on their opinions, backed by research in the asset class.
Ariel leaders candidly discuss opinions on the market and on stocks and sectors that may have, at the time of the interview, been held in one or more of Ariel’s strategies. This opinion is current as of the date of this interview but is subject to change. The information provided in this interview does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. This material should not be considered an offer for any of the securities referenced. The information contained in the interview is not guaranteed as to its accuracy or completeness. Portfolio holdings are subject to change.
Past performance does not guarantee future results. Investing in equity stocks is risky and subject to the volatility of the markets. The performance of any single portfolio holding is no indication of the performance of other portfolio holdings or its strategy. A growth investment strategy seeks stocks that are deemed to have above-average growth potential. Growth stocks offer an established track record and are perceived to be less risky than value stocks. A value investment strategy seeks undervalued stocks that show a strong potential for growth. The intrinsic value of the stocks in which a value strategy invests may be based on incorrect assumptions or estimations, may be affected by declining fundamentals or external forces, and may never be recognized by the broader market.
This document may contain forward‐looking statements relating to the objectives, opportunities, and the future performance of the markets generally. Forward looking statements may be identified by the use of such words as; “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Forward‐looking statements are subject to various factors, including, but not limited to general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors affecting a portfolio’s operations that could cause actual results to differ materially from projected results. Such statements are forward‐looking in nature and involve a number of known and unknown risks, uncertainties and other factors, and accordingly, actual results may differ materially from those reflected or contemplated in such forward‐looking statements. None of Ariel Investments or any of its affiliates or principals nor any other individual or entity assumes any obligation to update any forward‐looking statements as a result of new information, subsequent events or any other circumstances. All statements made herein speak only as of the date that they were made.
