As the global marketplace changes, successfully investing for growth in emerging markets requires a more evolved approach.
Our worldview can be distilled to Five Essential Truths that underpin Calamos Evolving World Growth Fund (CNWGX).
An Active Approach to Emerging Markets Investing
Emerging markets are in the midst of economic and demographic shifts that offer exciting potential for investors. More than 2.6 billion middle-class consumers in the EMs provide unprecedented opportunities for companies and investors alike.
Global consumer trends are changing as the emerging market middle class grows. This creates opportunities for forward-looking companies and investors.
Although the EM middle class has already embraced everything from soft drinks to smartphones to cars, the opportunities for companies—and investors—are just beginning. This means that even if economic data tapers over the short term, the prospects for long-term investors are exciting and sustainable.
We believe that successful asset allocations reflect long-term growth themes. The demographic and economic trends in the emerging markets have gained impressive momentum, which looks poised to continue. Investors seeking to benefit from the seismic shift in global growth drivers should revisit their allocation to emerging markets.
"We believe successful asset allocation strategies should reflect the expanding importance of emerging markets. Yet, data suggest that many investors may be missing the potential investment opportunity afforded by emerging markets. The information shown here may serve as a starting point for an investor seeking to access emerging market growth potential in a globally oriented, long-term portfolio. Of course, individuals' allocations will vary based on risk tolerance and time horizon.
We focus on what a company does and where it earns its revenues, not where it is headquartered. Calamos Evolving World Growth participates in EM opportunities by investing in:
Click on the map below to learn more about our approach.
Demographics and economic fundamentals make the long-term case for emerging market allocations. Still, the risks of EMs may be higher than in developed markets. At Calamos, we address these risks through an active, multipronged approach.
Because our participation in emerging markets is based on secular growth themes, we have more opportunities to choose among—and more ways to manage risks—versus funds that constrained by where a company is headquartered.
At Calamos, we have used convertible securities for more than 35 years to help manage the downside volatility in the equity markets. Convertible securities combine attributes of stocks and fixed income securities.
Calamos Evolving World Growth Fund has delivered its returns with less risk, as measured by a number of statistics.
"You just can't think about what is going to happen today or tomorrow. You have to look through the near-term volatility and think longer-term," says John P. Calamos Sr.
Because the investments in emerging markets are underpinned by long-term secular themes that look positioned to gain in force, we believe now represents a timely opportunity for investors and their financial advisors to discuss the role of emerging markets within asset allocation. Moreover, key valuation metrics support the long-term secular framework for growth.
Of course, every long-term position starts with decisive action, so now is the time to consider your first step.
Is it possible to participate in emerging markets without taking undue risk? According to The Calamos Doctrine, the answer is "absolutely."
This school of thought represents our belief that emerging markets investing doesn't have to be nerve-wracking. To the contrary, an insightful, actively managed approach can successfully deliver upside potential while providing downside resilience.
Our investment teams have managed money through good times and bad times, carefully guiding portfolios under widely varying conditions. This experience has informed the team's investment decisions and helped them deliver long-term performance, frequently outperforming the market during downturns.
Led by a highly experienced portfolio management team, the Calamos Evolving World Growth Fund already has demonstrated a strong performance track record. Applying our knowledge of growth investing to the emerging markets, we have established a five-year performance history that has earned the Fund a four-star rating* from Morningstar.
At Calamos, we use a disciplined and proven equity investment process. We conduct extensive independent research on individual stocks, searching around the globe for growth potential in the emerging markets. Most important, we have developed a well-defined and rigorous risk management process to manage diversification and liquidity.
Create real time reports on performance, risk analysis, peer group analysis, style attribution and more on the Calamos Investment Professional site.