Emerge
Sustainable Emerging Markets Equity ETF

Ticker: EPCH

Investment Objective

EMPWR Sustainable Emerging Markets ETF seeks to achieve long-term growth of capital by investing primarily, under normal circumstances, in equity securities of issuers in emerging market countries that meet the Emerge ETF’s Sustainability investment criteria.

The investment objectives of the Emerge ETF can only be changed with the approval of a majority of the unitholders at a meeting called for such purpose.

Fund Description

In order to achieve its investment objective, this Emerge ETF invests at least 80% of its net assets in equity securities of issuers located in emerging markets countries that, at the time of investment, meet the Emerge ETF’s Sustainability investment criteria. The Emerge ETF may invest in the securities of issuers of all capitalizations.

Emerging market countries are those countries that are considered to be developing by The World Bank or its affiliates, or are included in any of the MSCI emerging market indices or comparable indices used by investors as benchmarks for emerging market investments. Channing considers an issuer to be in an emerging market country if the issuer has been organized under the laws of, has its principal offices in, or has its securities principally traded in, an emerging market country, or if the issuer derives at least 50% of revenues or net profits from, or has at least 50% of assets or production capacities in, an emerging market country.

Equity securities include common stocks, partnership interests, business trust securities and other equity investments or ownership interests in business enterprises. The Emerge ETF may also obtain exposure to equity securities by investing in ADRs.

About Our Sub Advisor

Josephine Jimenez, CFA, CIO and Founder, Channing Global
  • Victoria 1522 Investments: Founder, CEO, CIO, Portfolio Manager
  • Victoria Emerging Markets: Managing Member
  • Rockcreek Consultant and Portfolio Manager
  • Wells Capital Management: Portfolio Manager
  • Montgomery Asset Management: Managing Director, Portfolio Manager
  • Emerging Markets Management, Inc: Analyst/Portfolio Manager

EDUCATION
Massachusetts Institute of Technology, MSc, 1981
New York University, BSc, 1979

The mission of Channing Global Advisors, LLC is to provide emerging markets and international equity strategies to institutional clients. Channing Global was established in 2017 by Channing Capital Management, LLC and Josephine Jimenez, CFA. Ms. Jimenez serves as Channing Global’s Managing Partner and is the Portfolio Manager of emerging-market strategies, while Ron Holt, CFA, oversees our international strategies. Together, they bring decades of experience in these asset classes to Channing Global, a subsidiary of U.S. equity-focused Channing Capital Management. With the goal of identifying high-quality yet undervalued companies, Channing Global’s strategies carry forward the philosophy that has guided Channing Capital since its inception.

Who Should Invest?

This Emerge ETF may be suitable for investors who:

  • seek exposure to equity securities of issuers in emerging market countries that meet the Emerge ETF’s Sustainability investment criteria
  • have a long-term investment perspective and
  • have a medium-to-high risk tolerance.
Fund Facts
Ticker CAD$ EPCH
Ticker USD$ EPCH.U
AUM (As of November 30th, 2022) $538,067 CAD
AUM.U (As of November 30th, 2022) $396,894 USD
Fund Type Active Emerging Markets Equity
Inception Date September 8, 2022
Management Fees 0.8%
CUSIP CAD$ 29104Y208
CUSIP USD$ 29104Y109
Primary Exchange NEO Exchange
Number of Holdings 47- this is an approximate
Advisor Channing Global Advisors
Benchmark MSCI Emerging Markets

**The fund is an actively managed exchange-traded fund (ETF) that does not seek to replicate the performance of a specified index.

NAV

(As of November 30th, 2022)

EPCH (CAD) $10.76
EPCH.U (USD) $7.94

Commitment to Sustainability

Investing in forward-thinking companies is a part of our core philosophy and product offering. We believe that the future of innovative products and services will be greatly influenced by global sustainability issues and the risk associated with them. Thus, investment managers that effectively assess environmental, social, and government “ESG” factors are more likely to generate sustained performance, while having a positive impact the society.

At Emerge, our focus on environment social, and corporate governance is centered around four broad base categories:

ESG Material issues
Climate change
Diversity and Inclusion
Activity Involvement

All Sustainability-related investment decisions made by Emerge are discussed by the Sustainability committee and documented in a report. Should Emerge decide to divest a company that has been identified, the divestiture will be done in an orderly manner; within a 90-day period

Top 10 Holdings

As of October 31st, 2022

Tenaris S.A. 5.8%
ICICI Bank Limited6.3%
Taiwan Semiconductor Manufacturing 6.1%
Companhia de saneamento Basicao Do Estado...3.6%
Petroleo Brasileiro S.A.4.3%
HDFC Bank Limited 4.0%
BIDU5.6%
Fabrinet Ordinary Shares3.2%
Sociedad Quimica y Minera S.A.3.2%
Ternium S.A. 3.0%

Geographic Allocation

As of October 31st, 2022

  • Asia 57.2%
  • Americas 19.9%
  • Europe 12.8%
  • Africa 2.6%
  • UK 1.8%

Market Cap

As of October 31st, 2022

  • Micro 0.5%
  • Small 32.2%
  • Medium 18.6%
  • Large 34.8%
  • Giant 8.3%

Before investing, you should carefully consider the ETF’s investment objectives, strategies, risks, charges and expenses. This and other information are in the prospectus, which may be obtained by visiting www.emergecm.ca. Please read the prospectus carefully before you invest.

 

ESG Risk. Because the Funds evaluate ESG factors to assess and exclude certain investments for non-financial reasons, the Funds may forego some market opportunities available to funds that do not use these ESG factors. Information used by the Funds to evaluate ESG factors, including data provided by third-party vendors, may not be readily available, complete or accurate, and may vary across providers and issuers and within industries, which could negatively impact the Funds’ ability to apply its methodology and in turn could negatively impact the Funds’ performance. Currently, there is a lack of common industry standards relating to the development and application of ESG criteria which may make it difficult to compare the Funds’ principal investment strategies with the investment strategies of other funds that apply certain ESG criteria or that use a different third-party vendor for ESG data. In addition, the Funds’ assessment of a company may differ from that of other funds or an investor. As a result, the companies deemed eligible for inclusion in the Funds’ portfolios may not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on the Funds’ ability to invest in accordance with its investment policies and/or achieve their investment objective.