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Baron Emerging Markets Equity—E/EUR

Symbol LU2041853107
Symbol LU2041853107
IN
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€95.53

Daily Change -€0.60 (-0.62%)
As of 07/18/2024

Net Assets

€2.14 M

As of 06/30/2024

Inception date

01/10/2020

Prices & Performance

PricesAs of 07/18/2024

NAVDaily Change (€)Daily Change (%)MTDQTDYTD
€95.53-€0.60-0.62%0.19%0.19%11.68%
NAV€95.53
Daily Change (€)-€0.60
Daily Change (%)-0.62%
MTD0.19%
QTD0.19%
YTD11.68%

PerformanceAs of 06/30/2024

YTD11 Year3 YearsSince Inception
01/10/2020
Baron Emerging Markets Equity—E/EUR11.47%11.40%-7.60%-1.06%
MSCI Emerging Markets Index (EUR)10.79%14.57%-1.81%2.33%
MSCI Emerging Markets IMI Growth (EUR)11.44%13.84%-4.42%2.36%

Portfolio Holdings & Characteristics

HoldingsAs of 06/30/2024

HoldingSector% of Net Assets
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited (TSM) is the world's largest independent semiconductor foundry, manufacturing chips on behalf of other companies.
Taiwan Semi (TSMC) remains the dominant force in leading edge semiconductor foundry manufacturing, as it benefits from economies of scale and a superior cost structure. Its successful track record of deploying new technology faster than competitors enables it to maintain its market share and pricing power. We believe TSMC’s investments in advanced nodes will solidify its superior market positioning and profitability in the long run.
Information Technology9.8%
Tencent Holdings Limited
Tencent Holdings Limited (700.HK) is a leading internet service company and the top game developer in China. Its primary platforms include QQ for instant messaging, WeChat for mobile messaging, and Qzone for social networking.
We are bullish on Tencent's ability to grow EPS at low double-digit rates in the long term and meaningfully enter new markets like e-commerce with its massive distribution. Tencent benefits from virtuous network effects, and we think it has a long runway to monetize its large user base by pushing value-added services and advertising through its platforms. We believe online advertising and advances in generative AI, fintech, and international gaming will continue to drive growth as management executes to capture share in these large and growing markets.
Communication Services4.7%
Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. (005930.KS) is a Korean technology conglomerate known for its leadership in consumer electronics and semiconductor manufacturing.
Samsung is the bellwether for global technology innovation and continues to deliver robust earnings across memory, logic, display, and smartphones. We are confident Samsung can maintain its technology leadership for decades to come, given its strong research and development track record and ability to meet ever-changing global consumer demand.
Information Technology4.5%
Bharti Airtel Limited
Bharti Airtel Limited (BHARTI.IN) is a leading telecommunications company, with operations in 18 countries across Asia and Africa. The company's offerings include wireless, mobile commerce, and fixed line. 
Bharti is a top three player in the Indian telecommunications industry. With more than 30% market share, it is well positioned to benefit from rising smartphone penetration and 4G services in India. The company should continue to gain market share from Vodafone India, which is on the brink of bankruptcy and will likely need to raise mobile tariffs by more than 50% to remain a viable entity. We expect earnings to generate mid-teens growth over the next three to five years, with further upside from its broadband and enterprise businesses.
Communication Services2.7%
Indus Towers Limited
Indus Towers Limited (INDUSTOW.IN) is a leading telecommunications tower operator in India. The tower industry is structured as a duopoly, with Indus and a key competitor accounting for about 60% of the market share.
Indus is a key beneficiary of industry consolidation and the rollout of 5G services by telecommunications providers. Given recent improvements in financial viability, Vodafone Idea (VI), a key customer of Indus, has resumed monthly payments and should be a re-rating catalyst for Indus’ stock. Additionally, Indus should benefit from VI’s planned 4G expansion and 5G rollout, which will drive tower additions, tenancy ratio improvement, operating leverage, and free cash generation. We expect Indus to deliver approximately 10% earnings growth over the next three to five years.
Communication Services2.6%
HD Korea Shipbuilding & Offshore Engineering Co., Ltd.
HD Korea Shipbuilding & Offshore Engineering Co., Ltd. (009540.KS) is the holding company of Hyundai Heavy, the largest shipbuilder in the world, based on orderbook size, and the global leader in high-end vessels including liquified natural gas (LNG)-powered ships.
Korean shipbuilders have an oligopoly in LNG carrier shipbuilding, LNG dual-fueled containerships, and tankers. The tightening regulation on carbon emission, which will be fully adopted by the International Maritime Organization (IMO) by 2030, should drive higher demand for LNG dual-fueled ships as well as carbon-free ammonia-fueled ships. We expect a structural shortage of compliant ships to emerge as the IMO deadline nears, which should benefit Korea Shipbuilding given its leading position.
Industrials2.4%
Reliance Industries Limited
Reliance Industries Limited (RELIANCE.IN) is India's leading conglomerate, with business interests that include oil refining, petrochemicals, media, telecommunications, and retail.
We believe Reliance is positioned to leverage its telecommunications network to transform into a digital services company, offering products such as video streaming, broadband, and e-commerce services. The company is also laying the groundwork to create an online marketplace that will connect over 12 million mom & pop retailers to over 400 million mobile and internet subscribers. We believe earnings will sustain high double-digit growth over the next three to five years.
Energy2.2%
Zomato Limited
Zomato Limited (ZOMATO.IN) is India's leading food delivery platform, with roughly 50% market share. The company also has a classified advertising business. 
Zomato is well positioned to benefit from structural growth in online food delivery in India. The industry has become a duopoly between Swiggy and Zomato, which bodes well for future profitability and scale. In our view, the company should generate revenue growth of more than 40% over the next three to five years.
Consumer Discretionary2.2%
InPost S.A.
InPost S.A. (INPST.NA) is a logistics company operating a dominant network of automated parcel lockers in Poland, with 45% market share in e-commerce delivery. It has a nascent position in the UK and a leading position in France through a 2021 acquisition. It also operates in several satellite countries.
InPost is driving innovation in B2C last-mile delivery. The company benefits from shared infrastructure, accelerating returns to scale and density, secular e-commerce growth, and channel shift to lockers versus to-door delivery. It holds over 90% market share in automated parcel lockers in Poland, reaching 87% of urban area residents within a 7-minute walk. It is also well positioned for international expansion, leveraging cross-border opportunities and ESG advantages for merchants, customers, and regulators.
Industrials2.1%
Alibaba Group Holding Limited
Alibaba Group Holding Limited (BABA) is the largest e-commerce company in the world. Alibaba owns and operates the two largest online shopping platforms in China, Taobao and Tmall, as well as a 33% stake in Ant Financial, which is the country's dominant payment platform.
With over 900 million active buyers and over 10 million merchants, we believe Alibaba benefits from the increased penetration of internet, mobile, and e-commerce in China. It enjoys roughly 60% market share of all e-commerce transactions in China, and we expect it to continue to be a dominant force in the country for years to come, though we acknowledge low-priced competition. We also see positive optionality in Alibaba's cloud computing, international commerce, data management, and electronic payment platforms.
Consumer Discretionary1.8%
Total
Total
34.9%
Top Ten Fund Holdings based on net assets. Portfolio holdings may change over time.
Portfolio holdings are subject to change. Current and future portfolio holdings are subject to risk.

Contributors / DetractorsQuarterly as of 06/30/2024

Top ContributorsAverage WeightContribution
Taiwan Semiconductor Manufacturing Company Limited8.49%2.08%
Tencent Holdings Limited4.59%1.03%
Dixon Technologies Ltd.1.26%0.65%
HD Korea Shipbuilding & Offshore Engineering Co., Ltd.2.01%0.57%
Trent Limited1.46%0.52%
Source: FactSet PA and BAMCO

GICS Sector BreakdownAs of 06/30/2024

Portfolio Characteristics

Information Technology

21.7%

Consumer Discretionary

17.4%

Financials

14.1%

Communication Services

13.7%

Industrials

13.0%

Consumer Staples

6.1%

Materials

4.3%

Cash & Cash Equivalents

2.5%

Energy

2.2%

Health Care

2.1%

Real Estate

1.8%

Utilities

1.3%

06/30/2024
Semiconductors12.80%
Diversified Banks6.50%
Interactive Media & Services6.10%
Broadline Retail 5.80%
Technology Hardware, Storage & Peripherals4.50%
Construction Machinery & Heavy Transportation Equipment 3.80%
Integrated Telecommunication Services3.70%
Restaurants2.70%
Wireless Telecommunication Services2.70%
Oil & Gas Refining & Marketing2.20%
Air Freight & Logistics2.10%
Electronic Components2.00%
Apparel, Accessories & Luxury Goods1.90%
Investment Banking & Brokerage1.90%
Apparel Retail1.80%
02468101214
Semiconductors12.80%
Diversified Banks6.50%
Interactive Media & Services6.10%
Broadline Retail 5.80%
Technology Hardware, Storage & Peripherals4.50%
Construction Machinery & Heavy Transportation Equipment 3.80%
Integrated Telecommunication Services3.70%
Restaurants2.70%
Wireless Telecommunication Services2.70%
Oil & Gas Refining & Marketing2.20%
Air Freight & Logistics2.10%
Electronic Components2.00%
Apparel, Accessories & Luxury Goods1.90%
Investment Banking & Brokerage1.90%
Apparel Retail1.80%
02468101214
India32.20%
China21.30%
Korea13.20%
Taiwan12.80%
Brazil6.00%
Poland2.80%
Mexico2.00%
Philippines1.50%
Hong Kong1.40%
South Africa1.30%
Indonesia1.20%
Peru1.10%
Japan0.50%
05101520253035
India32.20%
China21.30%
Korea13.20%
Taiwan12.80%
Brazil6.00%
Poland2.80%
Mexico2.00%
Philippines1.50%
Hong Kong1.40%
South Africa1.30%
Indonesia1.20%
Peru1.10%
Japan0.50%
05101520253035

Portfolio CharacteristicsAs of 06/30/2024

Baron Emerging Markets Equity—E/EURMSCI EM Index (EUR)
Inception Date10 January 2020
Net Assets€2.14 million
# of Issuers / % of Net Assets85 / 97.5%
Active Share68.9%
Median Market Cap€13.73 billion€6.42 billion
Weighted Average Market Cap€151.77 billion€151.30 billion
Management Fee1.20%
EPS Growth (3-5 year forecast)22.2%18.6%
Price/Earnings Ratio (trailing 12-month)21.914.4
Price/Book Ratio2.91.9
Price/Sales Ratio2.51.3
Minimum Investment Amount(E/EUR)$1,000,000
The Net Assets include all share classes combined.
Price/Book Ratio and Price/Sales Ratio are calculated using the Weighted Harmonic Average. Source: FactSet PA. Internal valuation metrics may differ.

Documents

Document Name
Fact Sheet
Prospectus