Managers & Models

Nuveen Sector Emergent Markets Portfolio: Capturing Growth Potential with Strategic Sector Focus

Emerging markets (EM) offer compelling growth potential, but navigating inherent complexities can be challenging. Enter the Nuveen Sector Emergent Markets Portfolio, an actively managed strategy that seeks to unlock alpha through a sector-focused approach.

Beyond the Benchmark

Unlike traditional EM strategies, the Nuveen Sector Emergent Markets Portfolio doesn't simply track an index. Instead, it leverages Nuveen's proprietary sector selection model to identify attractive sectors across EM economies. This data-driven approach considers various factors like:

• Economic trends: Analyzing growth potential within different sectors across EM countries.
• Valuation analysis: Identifying sectors with attractive valuations relative to their growth prospects.
• Risk management: Balancing exposure across sectors and countries to mitigate risk.

Building a Diversified Portfolio

Portfolio construction reflects Nuveen's sector-driven philosophy, selecting 30-40 companies across various market capitalizations, ensuring diversity within chosen sectors. Additionally, the portfolio maintains a balanced allocation among EM regions to manage geographic risk.

When is This Strategy Best Positioned to Shine?

The Nuveen Sector Emergent Markets Portfolio is expected to excel in specific market conditions:

• Periods of sector outperformance: When certain EM sectors experience stronger growth than the broader market, the portfolio's focused allocation can amplify returns.
• Early stages of economic cycles: The portfolio's focus on high-growth sectors can potentially capture alpha during initial phases of EM economic expansion.
• Volatile markets: The active management and emphasis on risk management aim to navigate market fluctuations and potentially outperform during turbulent periods.

Investors to Consider

This strategy might be suitable for investors seeking:

• Growth potential: Accessing the high-growth potential of EM markets with the potential for alpha generation through sector selection.
• Active management expertise: Leveraging Nuveen's research and sector expertise to navigate the complexities of EM investing.
• Diversification: Balancing exposure across sectors and regions to manage risk within the EM asset class.

Exploring the Path to Alpha

The Nuveen Sector Emergent Markets Portfolio offers a unique approach to EM investing, combining active sector selection with portfolio diversification. If you're seeking growth potential beyond traditional EM strategies, this portfolio warrants further exploration.