EMERGING MARKETS FUNDS - May '25

The Emerging Markets Fund was launched in September 2024 as part of the Bocconi Students Asset Management Club. It was created to give students the opportunity to gain real-world investment experience by managing a portfolio focused on high-growth markets outside of developed economies. The fund invests in equities across Asia, Latin America, the Middle East, and Eastern Europe, with a long-term perspective. Research is conducted entirely by students, who are responsible for analyzing macroeconomic trends, sector dynamics, and company fundamentals to build and maintain a well-diversified portfolio.

The fund’s primary goal is to outperform the Vanguard FTSE Emerging Markets ETF (VWO), which serves as its benchmark. While we do not follow a formal ESG investment strategy, the fund applies a basic ethical screen: we exclude companies involved in activities such as child labor, environmental destruction, or unethical governance. Investments are selected based on both top-down (macro and sector) and bottom-up (company-specific) analysis. We focus on building a concentrated yet diversified portfolio, typically holding around 15–20 positions across sectors and regions, ensuring risk is managed while aiming for alpha.

Since inception, the fund has achieved strong performance. As of the latest reporting period, it recorded a year-to-date return of 10.51%, significantly ahead of its benchmark, which returned 1.88% over the same period. This outperformance was driven by successful stock picks in China and Southeast Asia, with standout contributions from companies like Alibaba and BYD. The team’s active approach, combining continuous research, regional insights, and disciplined portfolio management, has proven effective in navigating emerging market volatility while generating excess returns.