AIB Life Emerging Markets Equity

Emerging Markets Equity aims to provide passive exposure to emerging markets equity performance. The fund does this by investing in a fund that seeks to track an emerging markets equity index. In practice, that means it is invested in shares of companies across emerging markets rather than trying to pick individual winners.

Emerging Markets Equity combines passive index tracking with sustainability screening. It targets strategies that reduce exposure to companies with poorer sustainability characteristics and increase exposure to companies with better ones. The fund is also classified as Article 8, meaning it promotes environmental or social characteristics as part of its approach.

Emerging Markets Equity’s top holdings include Taiwan Semiconductor Manufacturing Company, Samsung Electronics, SK Hynix, Tencent, Alibaba and HDFC Bank. Its sector exposure is led by Information Technology and Financials, with significant weights also in Consumer Discretionary, Industrials and Materials. This means returns will be influenced by how those companies and sectors perform.

Emerging Markets Equity may suit investors looking for broad exposure to emerging markets equities with a sustainability tilt. Because it tracks an emerging markets equity index, it is designed for investors who want market-style returns rather than active stock selection. It may appeal to those comfortable with higher volatility, which means the fund’s value can rise and fall more sharply than more conservative investments.

Emerging Markets Equity is exposed to equity risk and emerging markets risk. Equity risk means share prices can move up and down significantly, while emerging markets risk means these markets can be more volatile and less predictable than developed markets. Because the fund tracks an index, it may also closely follow falls in the underlying market rather than avoiding them.