Investment Strategies
Emerging Markets Small Cap Portfolio (Institutional)
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Emerging Markets Small Cap Fact Sheet

Emerging Markets Small Cap Portfolio (Institutional)

Managers

Craig Thrasher, CFA Portfolio Manager and Senior Research Analyst
Hyung Kim Portfolio Manager and Senior Research Analyst
    Introduction
    Highlights
    Top Five Holdings
    Sector Diversification
    Geographic Exposure
    Portfolio Characteristics
    Historical Returns
    Performance Statistics

The KAR Emerging Markets Small Cap Portfolio is an emerging market small-cap portfolio that invests in high-quality companies purchased at attractive valuations. It is a high-conviction strategy that utilizes a bottom-up fundamental research approach to identify what we believe are the best companies at the most attractive prices within the high-quality universe.

Highlights

Asset Class: Emerging Market Small Cap Equity
Primary Index: MSCI Emerging Market Small Cap Index
Inception Date: January 1, 2014
Holdings Range: 30-60

 

Sector Constraint: Seek broad diversification, but no sector constraints
Geographic Constraint: Seek broad diversification, but no country constraints
Portfolio Turnover: 25% – 35%

Top Five Holdings

As of September 30, 2024

This report is based on the assumptions and analysis made and believed to be reasonable by Advisor. However, no assurance can be given that Advisor’s opinions or expectations will be correct. This report is intended for informational purposes only and should be not considered a recommendation or solicitation to purchase securities. Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable. Numbers may not always add up due to rounding. Past performance is no guarantee of future results.

Company

Percent of equity (%)

Country
Baltic Classifieds Group 9.4 Lithuania
Grupa Pracuj 5.2 Poland
Heineken Malaysia 3.9 Malaysia
Rightmove 3.9 United Kingdom
Tegma Gestao Logistica 3.4 Brazil
Total 25.7

Sector Diversification

As of September 30, 2024
KAR Emerging Markets Small Cap
MSCI® Emerging Markets Small Cap Index

Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. The sector information represented above is based on GICS sector classifications. Data is obtained by FactSet Research Systems and is assumed to be reliable.

Geographic Exposure

As of September 30, 2024
KAR Emerging Markets Small Cap
MSCI® Emerging Markets Small Cap Index

Holdings are subject to change. Holdings and weightings are based on a representative portfolio. Individual Investors’ holdings may differ slightly. Data is obtained by FactSet Research Systems and is assumed to be reliable.

Portfolio Characteristics

As of September 30, 2024

* Number is from MSCI factsheet as of [quarter end date].

KAR utilizes the interquartile method when calculating Debt/EBITDA. The interquartile method excludes outliers from an aggregate statistic such as weighted average. The interquartile method does not assume that data from the top or bottom of the distribution are outliers—only the extreme ends are excluded—and that it can be applied consistently as a quantitative method for most fundamental characteristics. Debt/EBITDA utilizes net debt for the calculation.
This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Emerging Markets Small Cap fact sheet. Data is obtained from FactSet Research Systems and BNY Mellon and is assumed to be reliable. Other principal consultant firms may use different algorithms to calculate selected statistics. Estimates are based on certain assumptions and historical information. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Emerging
Markets Small
Cap

MSCI® Emerging
Markets Small
Cap Index
Quality
Return on Equity-Past 5 Years 18.1% 12.9%
Debt/EBITDA 0.4x 1.9x
Interest Expense Coverage 1.7x 2.5x
Growth
Earnings Per Share Growth-Past 5 Years 12.8% 14.8%
Earnings Per Share Growth-Past 10 Years 14.8% 10.1%
Dividend Per Share Growth-Past 5 Years 15.3% 14.1%
Dividend Per Share Growth-Past 10 Years 13.8% 9.1%
Value
P/E Ratio-Trailing 12 Months 19.3x 21.3x
Dividend Yield 2.9% 2.2%
Market Characteristics
$ Weighted Average Market Cap $3.3 B $2.1 B
Largest Market Cap $11.8 B $7.5 B*

Historical Returns (Institutional)

*January 1, 2014

†All periods less than one year are total returns and are not annualized. Returns are final.

‡Net  of all fees and expenses. Assumes a 0.95% annual fee. Fees presented on the Disclosure page of the KAR Emerging Markets Small Cap fact sheet could vary from the assumed fee in the net-of-fee calculation, as actual fees paid by a particular client account differ depending on a variety of factors including, but not limited to, business unit and size of mandate. The fee used on the Disclosure page of the KAR Emerging Markets Small Cap fact sheet utilizes an assumed maximum fee across the firm’s business units, which is further detailed on that page.

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Emerging Markets Small Cap fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Emerging Markets Small Cap fact sheet. Data is obtained from FactSet Research Systems and is assumed to be reliable. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Period KAR Emerging Markets Small Cap
(gross)		 KAR Emerging Markets Small Cap
(net)‡		 MSCI® Emerging Markets Small Cap
Index
Annualized Returns (%)† As of September 30, 2024
3rd Quarter9.339.085.48
Year to Date13.7612.9612.91
1 Year27.3326.1523.01
3 Year2.061.095.14
5 Year10.849.8012.22
7 Year9.898.867.05
10 Year8.787.755.86
Inception*8.667.646.15
Annual Returns (%)
202323.4122.2723.92
2022(22.04)(22.79)(18.02)
20210.94(0.01)18.75
202041.3140.0119.29
201920.1819.0611.50
2018(3.85)(4.77)(18.59)
201733.2031.9733.84
201618.4517.342.28
2015(16.02)(16.83)(6.85)
20142.201.231.01

Performance Statistics (Institutional)

Inception*  to September 30, 2024

*January 1, 2014

This material is deemed supplemental and complements the performance and disclosure on the Disclosure page of the KAR Emerging Markets Small Cap fact sheet. Returns of the Kayne Anderson Rudnick composite are final. For further details on the composite, please see the Disclosure page of the KAR Emerging Markets Small Cap fact sheet. Past performance is no guarantee of future results. Returns could be reduced, or losses incurred, due to currency fluctuations.
Concept

KAR Emerging
Markets Small
Cap (gross)

KAR Emerging
Markets Small
Cap (net)

MSCI® Emerging
Markets Small
Cap Index
Alpha 3.38 2.40 0.00
Sharpe Ratio 0.46 0.40 0.27
Information Ratio 0.30 0.18 N/A
Beta 0.78 0.78 1.00
Downside Capture 74.15 76.26 100.00
Tracking Error 8.33 8.33 N/A