Wasatch Emerging Markets Select Strategy

Strategy Overview

Highlights

A concentrated, yet diversified high-conviction portfolio of 30-40 stocks
Seeks the highest-quality growth companies in emerging markets
Truly active, collaborative, bottom-up, fundamental process
Systematic coverage of the emerging markets universe

Investment Approach

We use a bottom-up approach that seeks to identify companies with outstanding long-term growth potential. We look for companies with:

Strong financials
A sustainable competitive advantage
Industry-best management teams
Earnings growth greater than the relevant sector or industry

All cap flexibility with a focus on mid-cap companies

Approximately 20-40 positions

Portfolio Managers

Ajay Krishnan Lead Portfolio Manager

8 years on strategy

27 years at wasatch

Scott Thomas Associate Portfolio Manager

5 years on strategy

9 years at wasatch

Matthew Dreith Associate Portfolio Manager

3 years on strategy

10 years at wasatch

Performance

Average Annual Total Returns AS OF 09/30/21 AS OF 11/30/21

Quarter-End Month-end

1 Month

3 Month

ytd

1 yr

3 yr

5 yr

10 yr

Since
Inception

Emerging Markets Select Composite (Gross)

-4.98%

-3.62%

21.37%

34.05%

32.85%

23.46%

N/A

10.80%

Emerging Markets Select Composite (Net)

-5.02%

-3.72%

20.76%

33.33%

32.15%

22.78%

N/A

10.07%

MSCI Emerging Markets Index

-4.08%

-6.98%

-4.34%

2.70%

9.27%

9.52%

N/A

3.98%

Returns for periods less than one year are not annualized. Since inception performance is calculated from 12/31/2012.

Calendar Year Returns (%) NET OF FEES (AS OF 12/31/20)

Emerging Markets Select Composite

MSCI Emerging Markets Index

Performance is preliminary and subject to change. Past performance is not indicative of future results. Wasatch Global Investors is an independent registered investment advisor. Registration does not imply a certain level of skill or training. Wasatch 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 content contained herein. To receive a complete list of composite descriptions of Wasatch composites and/or a GIPS Composite Report, e-mail inforequest@wasatchglobal.com. The U.S. Dollar is the currency used to express performance.

The Emerging Markets Select Composite contains fully discretionary equity accounts following the Emerging Markets Select style. The composite primarily invests in equity securities of all market capitalizations that are tied economically to emerging market countries with the goal of long-term appreciation of capital. For comparison purposes the composite is measured against the MSCI Emerging Markets Net TR Index.

The MSCI Emerging Markets Net TR Index is a free float-adjusted market capitalization index designed to measure the equity market performance of emerging markets.

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.

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Portfolio

Characteristics AS OF 09/30/21

Portfolio

Index

Number of Holdings

1418

Average Market Cap
($ Weighted)

$40.66B

$135.25B

Median Market Cap

$13.70B

$7.76B

EPS Growth (%, est. 5 yr)

P/E (Forward)

Portfolio Turnover (%)

19.46

N/A

Active Share (%)

N/A

Performance Statistics AS OF 09/30/21

5 yr

Alpha

10.59

Beta

1.03

R-Squared

0.74

Standard Deviation

19.82

Upside Capture

162.55

Downside Capture

90.75

Top 10 Holdings AS OF 09/30/21

Company

% of Net Assets

Bajaj Finance Ltd. (India)

7.1%

Larsen & Toubro Infotech Ltd. (India)

Sea Ltd.ADR (Singapore)

5.7%

Silergy Corp. (Taiwan)

5.4%

Globant SA (Argentina)

5.2%

HDFC Bank Ltd. (India)

4.9%

Voltronic Power Technology Corp. (Taiwan)

4.6%

MercadoLibre Inc.

4.5%

TCS Group Holding PLC GDR (Russia)

4.4%

Lasertec Corp. (Japan)

4.3%

32 Number of holdings

96% Active share

Sector Allocation AS OF 09/30/21

Sector

Portfolio

Index

Information Technology

26.9

20.9

Financials

25.6

19.5

Consumer Discretionary

14.3

14.7

Industrials

12.2

4.9

Health Care

6.6

4.9

Communication Services

5.7

10.4

Cash & Cash Equivalents*

4.2

N/A

Consumer Staples

2.8

5.9

Materials

1.9

8.7

Energy

0.0

5.9

Utilities

0.0

2.3

Real Estate

0.0

2.1

Country Allocation AS OF 09/30/21

Portfolio (%)

Developed

17.3

Singapore

5.7

United States

4.5

Japan

4.3

Hong Kong

2.8

Emerging & Frontier

78.5

India

29.1

Taiwan

19.3

Brazil

7.2

China

6.1

Argentina

5.2

Russia

4.4

Mexico

3.3

Other

4.0

17.3% Developed

78.5% Em and Frontier

Country weights are calculated as a percentage of total portfolio including cash & cash equivalents.

Commentary & Literature

Commentary

Fact Sheet

News & Updates

The Tide May Be Turning Toward Emerging Markets

March 5, 2021

One of our favorite observations about investing comes from Seth Klarman: “I…

Semiconductors: The “New Oil”

February 19, 2021

While oil and other natural resources had been the foundation of emerging–market investing, silicon–based semiconductors will…

Market Scout – Technology’s Rising Importance in Emerging Markets

January 8, 2021

When it comes to technological innovation around the world, semiconductor production is…

Global Mid Caps

January 31, 2020

At Wasatch Global Investors, we got our start managing U.S. micro– and small–cap strategies. We’ve…

Important Disclosures

Portfolio Characteristics, Allocations and Top Ten Holdings are derived from a representative account.

Est. 5-year EPS Growth %: Estimated percentage increase in earnings per share (EPS) per year of the fund's holdings over the next 5 years. Returns are not guaranteed and may be higher or lower. Source: Wasatch and FactSet. P/E Ratio (forward and trailing): Sum of stock prices of the fund's holdings divided by the aggregate earnings per share of those holdings for the next 12 months (forward), or past 12 months (trailing), calculated as a weighted harmonic average. P/E to Growth Rate: Forward 12-month P/E ratio divided by the estimated 5-year EPS growth rate. Portfolios with a number less than 1.0 would be considered undervalued, around 1.0 would be considered fair valued and significantly greater than 1.0 would be considered overvalued. Weighted Average Market Cap: Average market capitalization of companies held by the fund, weighted by their percentage of fund net assets. Portfolio Turnover: A measure of trading activity in a fund's portfolio over the past 12 months expressed as a percentage of the fund's average total assets. Alpha measures a fund's risk/reward potential. A positive alpha means the fund outperformed the index. A negative alpha means the fund underperformed the index. Beta measures a fund's risk in relation to the market. A beta of 0.8 means the fund's total return is likely to move up or down 80% of the market change; 1.25 means total return is likely to move up or down 25% more than the market. R-Squared measures (from 0 to 1.0) how closely a fund's movements are correlated with movements of its benchmark. An R-squared of 1.0 would mean that the fund's movements are completely correlated with the movements of its benchmark. Active Share measures the difference between portfolio holdings and the benchmark. It is the sum of the absolute values of the different weightings of each holding in the fund versus each holding in the benchmark, divided by 2. Standard Deviation measures the degree to which a fund's performance has varied from its average performance over a particular time period. The greater the standard deviation, the greater a fund's volatility (risk). Upside Capture explains how well a fund performs in time periods where the benchmark's returns are greater than zero. Downside Capture explains how well a fund performs in time periods where the benchmark's returns are less than zero.

Portfolio holdings are subject to risks and may change at any time.

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