Performance: Emerging Markets Growth

Em chart

Annualized Trailing Periods ending October 31, 2018

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
1 Year -15.41 -16.27 -12.52
Since Inception** -3.50 -4.58 -1.73

Cumulative Since Inception Periods ending October 31, 2018

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
Cumulative Since Inception -4.64 -6.06 -2.30

Annual Periods

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
YTD 10/31/2018* -20.62 -21.43 -15.72
2017** 20.14 19.56 15.92

Annualized Trailing Periods ending December 31, 2017

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
  • * Preliminary
  • **Partial year: July 1, 2017 – December 31, 2017

From inception ending October 31, 2018

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
From Inception* -4.64 -6.06 -2.30
Annualized* -3.50 -4.58 -1.73
Year-to-date* -20.62 -21.43 -15.72
DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
2018
October * -11.32 -11.57 -8.71
September -3.41 -3.41 -0.53
August -6.01 -6.01 -2.70
July -2.15 -2.40 2.20
June -5.89 -5.89 -4.15
May 1.84 1.84 -3.54
April -0.09 -0.34 -0.44
March -0.89 -0.89 -1.86
February -2.41 -2.41 -4.61
January 8.79 8.54 8.33
2017
December 3.47 3.47 3.59
November 3.00 3.00 0.20
October 0.76 0.51 3.51
September 1.06 1.06 -0.40
August 4.10 4.10 2.23
July 6.34 6.09 5.96
  • * Preliminary

From inception ending October 31, 2018

DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
From Inception* -4.64 -6.06 -2.30
Annualized* -3.50 -4.58 -1.73
Year-to-date* -20.62 -21.43 -15.72
DSM Pre-Fee (%) DSM Post-Fee (%) MSCI EM
Net Return (%)
2018
Current QTD * -11.32 -11.57 -8.71
Third -10.49 -11.15 -7.68
Second -4.24 -4.48 -7.96
First 5.22 4.98 1.42
2017
Fourth 7.39 7.12 7.44
Third 11.88 11.61 7.89
  • * Preliminary

Emerging Markets Growth

1. Past performance is no guarantee of future results and individual accounts and results will vary. Materially different market or economic conditions could result in markedly different performance, including the possibility of loss. The content presented is for informational purposes only. It is not intended to reflect a current or past recommendation, investment, legal, tax or accounting advice of any kind, or a solicitation of an offer to buy or sell any securities or investment services. Except as otherwise specified, any companies, sectors, securities and/or markets discussed are solely for illustrative purposes regarding economic trends and conditions or investment process and may or may not be held by DSM Capital Partners LLC (“DSM”) or other investment vehicles or accounts managed by DSM. Investing entails risks, including possible loss of principal. There are also special risk considerations associated with international and global investing (especially emerging markets), small and mid-capitalization companies, or other growth and/or concentrated investment strategies.

2. DSM, located in Palm Beach Gardens, Florida, is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended, managing separate accounts, pooled investment vehicles and wrap accounts for both institutional and high net worth investors.

3. DSM primarily manages equities in a model portfolio method and therefore presents a single composite return for managed accounts of each strategy offered. In general, the Emerging Markets Growth Strategy will invest in equity securities of issuers from emerging markets countries without regard to market capitalization. Equity securities, as determined by DSM, in its discretion, include, but are not limited to, common stocks, preferred stocks, securities convertible into common stocks, rights and warrants. Emerging market countries include every nation in the world except the US, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. In addition, as determined by DSM, factors bearing on whether an issuer is considered to be based in an emerging market may include whether it is legally domiciled in an emerging market, whether the security’s principal trading market is located in an emerging market, and/or whether the issuer conducts approximately one-third or more of its business, as measured by location of sales, earning, assets or production in an emerging market. The Emerging Market Growth model portfolio may generally invest up to 20% of its net assets in equity securities of issuers from non-emerging markets. The Emerging Markets Growth model portfolio generally will contain 25 to 50 equity securities.

4. DSM claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. DSM has been independently verified for the periods January 2002 to December 2017. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The Emerging Markets Growth composite has been examined for the periods July 2017 to December 2017. The verification and performance examination reports are available upon request. Benchmark returns are not covered by the report of independent verifiers.

5. DSM’s performance composite includes all discretionary Emerging Markets Growth Strategy managed accounts. The composite was created July 1, 2017. A complete list and description of composites, as well as policies for valuing portfolios, calculating performance, and preparing compliant presentations, may be requested from Russell Katz, DSM Capital Partners LLC, 7111 Fairway Drive, Suite 350, Palm Beach Gardens, Florida 33418. Phone: 561-618-4000; email: rkatz@dsmcapital.com.

6. DSM first offered the Emerging Markets Growth strategy to clients during June of 2017. There was one account in the composite for the period from July 1, 2017 to present. The account is a collective trust comprised of non-fee-paying employee accounts.

7. Performance is presented in US Dollars. Results are time-weighted and asset-weighted based on beginning-of-period asset values. Valuation is on a trade-date basis. Results include the reinvestment of dividends and other earnings. Dividends are realized on an accrual basis; cash equivalent dividends are realized on a cash basis. Composite returns are net of withholding taxes on foreign dividends. As of March 2017, reclaimed withholding taxes are recognized as income when received. Pre-fee results include the effect of commissions; post-fee results include the effect of commissions and management fees. Custody charges, where applicable, are not deducted from gross and net-of-fee performance. The 36-month annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36-month period. The 36-month standard deviation is not shown for periods comprising fewer than 36 monthly returns. Dispersion between accounts is the asset-weighted standard deviation of gross returns for active accounts with DSM for the entirety of a given year. Dispersion is only reported for years having five or more such accounts. Additional information regarding policies for calculating and reporting returns is available upon request.

8. DSM’s management fee is generally 1.0% per annum on the assets. DSM’s advisory fees are fully detailed in Part 2A of its Form ADV. This fee is charged quarterly in arrears. Certain accounts in the composite may have different fee structures and certain accounts may involve non-fee expenses not included above. The performance figures presented do not reflect the deduction of investment advisory fees actually charged to the accounts in the composite. Rather, the performance results presented reflect the deduction of a model advisory fee. The composite includes one trust compromised of several non-fee-paying employee accounts. From inception of the composite on July 1, 2017, a model advisory fee of 1.0% per annum for Emerging Markets Growth has been used. DSM calculates post-fee returns by deducting the entire quarterly model fee in the first month of the quarter, with no fee deduction in the second and third month of the quarter. Quarterly post-fee returns based on beginning-of-quarter market values may compound to more or less than monthly post-fee returns based on beginning-of-month market values.

9. The MSCI Emerging Markets Net Total Return USD Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The MSCI Emerging Markets Index is comprised of 24 countries and over 800 securities. Emerging market countries include: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. This index includes dividends reinvested net of withholding taxes. MSCI uses the withholding tax rate applicable to non-resident institutional investors that do not benefit from double taxation treaties. DSM uses the MSCI Emerging Markets Index as a benchmark because it is a global industry standard. Characteristics of any benchmark may differ materially from accounts managed by DSM. The volatility of a benchmark may be materially different from the individual performance attained by a specific client investing within this strategy, and the holdings of the accounts contained within the composite may differ significantly from the securities that comprise the benchmark. Indices are not assessed a management fee and investors cannot directly invest in an index.

10. Leveraged accounts, if any, in the composite involve non-discretionary leverage only. In such cases, per GIPS recommendations, the effect of leverage is removed by treating borrowing as a cash flow and adding back margin interest.

11. There have been no material changes in the persons responsible for the investment management of the Emerging Markets strategy since its inception.

Revised: 6/22/2018