Our equity portfolios typically consist of 80 to 120 companies, diversified by sector, geography and individual securities. We generally do not set formal targets for sector or geographic weights, but instead allow security selection to drive the process. Portfolios are then reviewed to ensure they are constructed with a balanced exposure in mind and good representation across many industries and regions of the globe.

Because we seek businesses that will appreciate in value over three to five years, the turnover rate on equity portfolios is relatively low at 20% to 25% per year. Turnover on fixed income is even lower at approximately 10% per year.

Fixed Income

The fixed income portion of a portfolio is viewed as a source of stability and income. As such, great care is taken to avoid credit risk that is normally inadequately compensated by higher returns. The equity markets offer more generous compensation for risk.

We stress forecasting major swings in interest rates and adjusting the term of the portfolio accordingly. Our belief is that short-term fluctuations are extremely difficult, if not impossible, to forecast consistently, whereas intermediate-term movements can be easier to predict.

We prepare detailed economic forecasts for Canada and the United States. We also follow this data for Europe and Asia. We analyze all major currencies in-house. From this work we seek to determine the inflation outlook and demand for funds in each economy and sector in order to analyze the medium to longer term direction of interest rates.

The financial characteristics of specific instruments can be quite important. For instance, the choice between a coupon and a bond of equal duration can often be a strategic issue. Attention is thus given to analyzing the special characteristics of many bonds, such as extendible, retractable, callable, redeemable, convertible and currency features.

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China, India, Eastern Europe, Africa and Latin America are amongst the fastest growing and most dynamic economic regions of the world. A true global investment strategy needs exposure to strong businesses in these areas.

Letko Brosseau has been investing in Emerging Markets for more than 20 years, with a dedicated Emerging Markets strategy since 2011.

Letko Brosseau has been independent since 1987 and now manages assets of approximately $28 billion. Our disciplined and long-term approach, alongside the deep industry expertise of our talented and multi-cultural team, have provided meaningful results in these high-potential markets.

  • Emerging Markets Equity
  • Balanced
  • Global Equity
  • Canadian Equity
  • Fixed Income
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billion in emerging market equities



8 years annualized return




annualized benchmark outperformance

Performance results are annualized and presented in Canadian dollars gross of fees for the Letko Brosseau Emerging Markets Equity Composite. This $1.6 billion composite was created in July 2011 and includes all discretionary emerging markets equity mandates with asset mix targets for fixed income securities of less than 10%. The benchmark since inception is 5% Deutsche Bank Federal Funds Effective Rate Total Return Index and 95% MSCI Emerging Markets Total Return Net Index.

* Refers to annualized returns of the Letko Brosseau Emerging Markets Composite for 1, 4, 5 and 6 years to June 30, 2019. Peer comparison is the Pavilion Advisory Group Ltd.’s Global Emerging Markets Equity Universe dated June 30, 2019, which includes 150+ investment strategies globally.

Past performance does not guarantee future results.