GEME provides investors with a concentrated, value-orientated portfolio of large- and mid-cap EM equities, actively managed by a highly experienced team

Pacific AM, the London-based asset manager (“known as Pacific Asset Management outside of the US”), announced the launch of its first actively managed exchange-traded fund, the Pacific NoS Global EM Equity Active ETF (Ticker: GEME). The new ETF began trading on the NASDAQ today.

The Pacific NoS Global EM Equity Active ETF is a value-orientated actively managed emerging market equity ETF, investing in a concentrated portfolio of 20-50 large and mid-cap companies across the major emerging markets. GEME adopts the same approach as the Pacific NoS Global EM Equity Strategy which launched in August 2024 with a current AUM of c.$700m.

GEME is managed by Pacific AM’s EM sub-advisor North of South Capital, a highly experienced emerging markets firm, founded in 2004, that oversees $4bn for investors globally. The team, led by portfolio managers Kamil Dimmich and Matt Linsey, look for quality businesses that they believe are also undervalued, by combining fundamental qualitative research with a rigorous valuation process that incorporates both macro and stock-specific risks.

Pacific NoS Global EM Equity Active ETF (GEME)

• Aims to achieve long-term capital appreciation by investing in a concentrated portfolio of large and mid-cap emerging market companies that are undervalued according to North of South’s proprietary “Cost of Capital” valuation framework, which sees the team favour established business models with predictable cashflows.
• Net expense ratio is 0.75%

Founded in 2016, Pacific AM is a modern, diversified, and technology-driven asset manager that manages over $12.3bn in client assets. Pacific AM has achieved considerable success, serving a global client base that includes financial advisers, wealth managers, family offices, pension funds and other institutional investors.

Sebastian Stewart, Partner and Head of US Institutional Sales, Pacific Asset Management, said:

“At Pacific, we are obsessed with finding innovative solutions to our clients' investment needs. We truly believe the Active ETF structure is the future for US investors looking to benefit from institutional-quality active management in a regulated fund wrapper. Active ETFs are typically more transparent, accessible, tax efficient and cost effective, making this a great choice for many clients. The launch of GEME exemplifies Pacific’s forward-thinking approach to product development and putting our clients first.”

Kamil Dimmich, portfolio manager commented:

“Having been out of favour for the last 15 years, Emerging Markets are now home to some of the most innovative and cash generative businesses in the world, which are also trading at a fraction of the valuations found in the US and other developed markets. We believe our process, which differs from many other EM strategies currently available in the market, particularly those that are passive, is specifically designed to identify these sorts of companies; strong businesses, with predictable cash flows that are also undervalued. With this backdrop and as investors look to diversify their portfolios to capture the new sources of growth, it is a really exciting time to be launching GEME.”

For more information on GEME, please visit geme-etf.com.

An investor should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus which contains this and other information about the fund may be obtained by calling 844-745-5220/visiting geme-etf.com. The prospectus should be read carefully before investing.

The Pacific NoS Global EM Equity Active ETF is distributed by Foreside Fund Services, LLC.

Investing involves risk. Principal loss is possible. Securities of mid-capitalization companies may have comparatively greater price volatility and less liquidity than the securities of companies that have larger market capitalizations and/or that are traded on major stock exchanges. Investments in non-U.S. securities involve certain risks that may not be present with investments in U.S. securities. Investments in emerging markets securities are considered speculative and subject to heightened risks in addition to the general risks of investing in foreign securities. Unlike more established markets, emerging markets may have governments that are less stable, markets that are less liquid and economies that are less developed. In addition, the securities markets of emerging market countries may consist of companies with smaller market capitalizations and may suffer periods of relative illiquidity, significant price volatility, restrictions on foreign investment, and possible restrictions on repatriation of investment income and capital. To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region. The Fund expects to have significant exposure to issuers in China, Taiwan, and South Korea. The liquidity of the A-shares market and trading prices of A-shares could be more severely affected than the liquidity and trading prices of other markets because the Chinese government restricts the flow of capital into and out of the A-shares market.

The Fund pursues a “value style” of investing. Value investing focuses on companies whose stock appears undervalued in light of factors such as the company’s earnings, book value, revenues or cash flow. Fixed income risk factors include credit risk (the debtor may default) and prepayment risk (the debtor may pay its obligation early or later than expected, potentially reducing the amount of interest payments or extending time to principal repayment). A derivative instrument often has risks similar to its underlying instrument and may have additional risks, including imperfect correlation between the value of the derivative and the underlying instrument, risks of default by the counterparty to certain derivative transactions, magnification of losses incurred due to changes in the market value of the securities, instruments, indices or interest rates to which the derivative relates, and risks that the derivative instruments may not be liquid. Participatory notes (“P-notes”) are participation interest notes that are issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying equity, debt, currency or market. A new or smaller fund is subject to the risk that its performance may not represent how the fund is expected to or may perform in the long term. Liquidity risk exists when particular investments are or become difficult or impossible to purchase or sell. Markets may become illiquid when, for example, there are few, if any, interested buyers or sellers or when dealers are unwilling or unable to make a market for certain securities.

ETFs are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF's shares may trade at a premium or discount to its net asset value, an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact an ETF's ability to sell its shares. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the ETF. Brokerage commissions will reduce returns.

Notes to Editor

Pacific AM

Pacific AM is an independent asset manager founded in 2016 responsible for over $12.3 billion* of assets. Pacific AM is headquartered in London and known outside of the US as Pacific Asset Management.

Pacific AM is a fresh and progressive asset manager, rethinking the conventions of how asset management works for advisers, institutions, investors, asset owners and the industry.

Pacific AM’s single manager business focuses on high conviction investing in less efficient markets and securities, where they believe active managers can outperform through their skills and expertise. The firm currently offers Emerging Market Equity, Emerging Market Equity Income, G10 Macro Rates, Global Active Credit, North American Equities and Thematic Equity solutions.

Pacific AM provides a range of technology enabled model portfolio solutions, delivered on all major adviser platforms, which blend a range of investment styles including active, passive and factor funds.

*As at 31^st December 2024

North of South Capital

North of South Capital was founded in 2004 and currently oversees $4bn in Emerging Market Equity strategies. The team combine decades of experience investing in Emerging Markets with a disciplined proprietary valuation process to deliver significant long-term outperformance relative to the broader EM universe.

Over the years the team have built long-standing partnerships with institutional and wholesale investors in the UK, EU, North and South America as well as Asia and the Middle East.

Outstanding EM All Cap, Global EM and EM Income offerings

The team at North of South Capital runs a limited number of strategies underpinned by the same philosophy and process. As owners of the business, the team are aligned with their investors to deliver long-term results.

In valuing companies North of South believe that cash flows need to be discounted using an appropriate Cost of Capital which reflects both macroeconomic and stock specific risks. North of South’s Cost of Capital framework takes into account government bond yields and other macroeconomic data, as well as a stock specific Equity Risk Premium.

North of South’s Equity Risk Premium methodology is an extension of the traditional capital asset pricing model and includes factors such as liquidity of the stock, volatility of the stock, volatility of earnings, underlying leverage and subjective factors such as corporate governance.

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