Emerging Markets Small-Cap

Overview

Investment Objective

To exceed the return of the MSCI Emerging Markets Small Cap Index (net) over a full market cycle (six- to eight-year period).

Investment Universe

Bridgeway focuses on a universe of common stocks within the range of the MSCI Emerging Markets Investable Market Index.

Investment Strategies

The strategy seeks to outperform the MSCI Emerging Markets Small Cap Index (net) over a market cycle within tracking error bounds by investing in a portfolio consisting primarily of equity securities of small sized companies in emerging markets as well as securities that are domiciled or have a significant portion of their business activities in emerging markets.

Bridgeway selects securities based on a systematic approach that considers fundamental measures such as value (e.g., price-to-earnings ratio), indicators of quality (e.g., return on equity), and sentiment (e.g., estimate revisions). Specific measures are applied based on an adaptive categorization of the type of company based on a proprietary definition of intangible capital intensity. A key element of the investment strategy is a differentiated approach to portfolio construction that includes active share proportionality and factor exposure parity.