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Ariel Emerging Markets Value Ex-China

This separately managed account strategy targets a concentrated set of companies in emerging markets, excluding mainland China, that demonstrate long-term earnings power at attractive valuations.

Ariel Emerging Markets Value Ex-China (Gross)
Inception Date 05/31/2023
Assets (as of 12/31/2023) $5.9 million

Our Portfolio Managers

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Henry Mallari-D’Auria, CFA®

Executive Vice President, Chief Investment Officer, Global and Emerging Markets Equities

Vlad Byalik headshot
Vlad Byalik

Portfolio Manager and Senior Research Analyst

Christine-Philpotts headshot
Christine Phillpotts, CFA®

Portfolio Manager and Senior Research Analyst

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We embrace

Active patience

Long investment horizon
Discernable catalysts
Lower turnover

Independent thinking

Finding unrecognized value
Benchmark agnostic
Inefficiency equals opportunity

Focused expertise

Emerging and Frontier market specialists
Non-consensus, best ideas portfolios
Bottom-up stock selection

Teamwork

Long-tenured colleagues
Collective experience leveraged
Aligned incentives
Inclusive engagement

We reject

Short termism

Risk on/risk off investing
Value traps
Trading mentality

Group think

Crowded trades
Closet indexing
Company guidance

Thematic investing

Novice practitioners
Backward-looking research
Top-down portfolios

Individualism

Job hoppers
Smartest in the room mentality
Winner takes all
Siloed decision-making

Sector Weightings

Weightings table for Ariel Emerging Markets Value ex-China
(as of 12/31/2023)
(as of 12/31/2023) Ending Weight (%) MSCI EM ex-China Net Index (%)
Financials
Ending Weight (%)
30.41
MSCI EM ex-China Net Index (%)
24.72
Information Technology
Ending Weight (%)
27.47
MSCI EM ex-China Net Index (%)
27.72
Consumer Discretionary
Ending Weight (%)
7.08
MSCI EM ex-China Net Index (%)
6.46
Utilities
Ending Weight (%)
6.90
MSCI EM ex-China Net Index (%)
2.80
Real Estate
Ending Weight (%)
6.49
MSCI EM ex-China Net Index (%)
1.29
Industrials
Ending Weight (%)
6.34
MSCI EM ex-China Net Index (%)
7.38
Materials
Ending Weight (%)
4.72
MSCI EM ex-China Net Index (%)
9.63
Energy
Ending Weight (%)
3.62
MSCI EM ex-China Net Index (%)
5.82
Consumer Staples
Ending Weight (%)
3.10
MSCI EM ex-China Net Index (%)
6.24
Health Care
Ending Weight (%)
2.10
MSCI EM ex-China Net Index (%)
3.04
Cash
Ending Weight (%)
1.76
MSCI EM ex-China Net Index (%)
0.00
Communication Services
Ending Weight (%)
0.00
MSCI EM ex-China Net Index (%)
4.90

Disclosures related to the data above can be found at the bottom of this page.

The following includes disclosures and benchmark definitions relevant to the investment strategy of this product.

Ariel Investments, LLC (Ariel) is a Delaware limited liability company and federally registered investment adviser regulated by the U.S. Securities and Exchange Commission. Ariel is headquartered in Chicago, Illinois, with offices in New York, San Francisco, and Sydney. Ariel offers investment strategies that seek long-term capital appreciation by investing primarily in equity securities. Ariel utilizes a bottom-up, fundamental analysis to select quality company stocks. Taking a long-term view and applying independent thinking to our investment decisions, Ariel spans the market cap spectrum from small to large and covers the globe with international and global offerings. Ariel claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein.

The Ariel Emerging Markets Value ex-China strategy seeks long-term capital appreciation as a primary objective. The strategy’s secondary objectives are to seek long-term capital preservation, to generate attractive absolute returns and to attain higher absolute and relative returns compared to its benchmark over a full market cycle. The strategy invests primarily in equity securities of non-U.S. companies in emerging markets, excluding mainland China. The strategy will invest in non-U.S. securities by purchasing equity securities directly or through instruments that provide exposure to non-U.S. companies. The strategy is permitted to invest in companies of any size. The Ariel Emerging Markets Value ex-China Composite differs from its benchmark, the MSCI EM (Emerging Markets) ex-China Index because the Composite has fewer holdings than the benchmark.

The strategy uses various techniques to hedge currency exposure or to invest significant cash inflows in the market (i.e., reducing “cash drag”), including derivatives, exchange-traded funds (“ETFs”) and other hedges. The strategy will buy and sell currency on a spot basis and enter into foreign currency forward contracts. Ariel uses these techniques primarily in an attempt to ensure that stock selection is the primary driver of relative returns.

Indexes are unmanaged. An investor cannot invest directly in an index.

The MSCI Emerging Markets ex-China Index captures large and mid cap representation across 23 of the 24 Emerging Markets (EM) countries excluding China. Its inception date is March 9, 2017.

All MSCI Index net returns reflect the reinvestment of income and other earnings, including the dividends net of the maximum withholding tax applicable to non-resident institutional investors that do not benefit from double taxation treaties. MSCI uses the maximum tax rate applicable to institutional investors, as determined by the companies’ country of incorporation. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used to create indices or financial products. This report is not approved or produced by MSCI.

The sectors shown for the Global strategies are the Global Industry Classification Standard (“GICS”). GICS was developed by and is the exclusive property and service mark of MSCI Inc. and Standard & Poor’s (S&P), a division of The McGraw Hill Companies, Inc. GICS is licensed for use by Ariel Investments, LLC. Neither MSCI, S&P nor any third party involved in making or compiling GICS or any GICS classifications makes any express or implied warranties or representations with respect to such standard or classification (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability and fitness for a particular purpose with respect to any such standard or classification. Without limiting any of the foregoing, in no event shall MSCI, S&P, any of their affiliates or any third party involved in making or compiling the GICS or any GICS classifications have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

Cash weight includes any currency forwards in the portfolio, net unrealized gain/loss.