TMFEX — Motley Fool Emerging Markets Fund

TMFEX Fund Overview

TMFEX — Motley Fool Emerging Markets Fund is a US mutual fund managed by Rbb Fund, Inc., categorised as Emerging Markets Growth Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Rbb Fund, Inc.
• Category: Emerging Markets Growth Equity
• Ticker: TMFEX
• SEC CIK: 0000831114
• SEC series ID: S000055871
• Share class ID: C000175997

TMFEX Investment Objective and Strategy

Motley Fool Emerging Markets Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Rbb Fund, Inc..

Investment objective

The investment objective of the Emerging Markets Fund is to achieve long-term capital appreciation.

Principal investment strategy

The Emerging Markets Fund pursues its investment objective using a growth at a reasonable price investing style. The Fund invests in a focused portfolio of the common stocks of high-quality companies organized in emerging market foreign countries. The Fund intends, under normal circumstances, to invest at least 80% of its net assets (including borrowings for investment purposes) in the securities of emerging market issuers and other investments that are tied economically to emerging market countries. The Adviser defines emerging market companies as companies located or organized in or whose primary business is carried out in emerging markets. The Adviser will invest in countries classified as Advanced Emerging, Secondary Emerging, or Frontier, or not classified by FTSE Russell. A formal review of country classification within the FTSE global equity indexes is conducted on an annual basis each September using a comprehensive, transparent and consistent methodology to classify stock markets as Developed, Advanced Emerging, Secondary Emerging or Frontier within the FTSE global equity indexes.

It is expected that investments in the securities of companies in emerging market countries, including depositary receipts, having smaller market capitalizations (less than $3 billion) will be important components of the Emerging Markets Fund's investment program, although the Emerging Markets Fund may invest in issuers of all capitalization sizes. Under normal circumstances, the Emerging Markets Fund seeks to stay fully invested and does not attempt to time the market. In identifying investments for the Emerging Markets Fund, the Adviser looks for securities of companies that have high-quality businesses with strong market positions, manageable leverage, robust streams of free cash flow, and trade at attractive prices. In managing the Emerging Markets Fund's investment portfolio, the Adviser regularly reviews and adjusts the Emerging Markets Fund's allocations to maintain a diversified mix of investments that the Adviser believes offer the best overall potential for long-term growth of capital.

The Emerging Markets Fund will sell securities in which it has invested based upon the Adviser's analysis of fundamental investment criteria, including its assessment of the current value of a security relative to the security's current market price, business fundamentals relating to the issuer, and developments affecting the issuer's business prospects and risks. The Emerging Markets Fund prefers to invest in high-quality businesses when possible. To identify these high-quality businesses, the Adviser engages in research to evaluate each company under consideration using four criteria: management, culture, and incentives; the economics of the business; competitive advantage; and the durability of its competitive advantage period. The Adviser's approach prizes a long-term mindset and a balance of qualitative and quantitative factors.

Management, Culture, and Incentives. The Adviser believes that management is a key element to long-term success at most businesses. Among the factors the Adviser considers are: manager and board of director fit, the clarity of vision and strategies, main-line culture and turnover, ownership in the business, the sensibility of incentives, capital allocation choices and results, external transparency and candor, and overall treatment of stakeholders. Economics of the Business. The Adviser believes that the economic performance of a business is a signal for quality. The Adviser's process looks at the company's long-term return on capital, the scalability of its business model, relative and absolute margins, business and product cyclicality, and other key performance indicators to gain insight into its potential for future performance.

Competitive Advantage. The Adviser seeks companies that offer certain characteristics that allow them to generate and sustain outsized returns on capital on an absolute basis as well as in comparison to their peers. Competitive advantages may include pricing power, geographic barriers to entry, network effects, regulatory barriers to entry and superior brands, among others. The Adviser also assesses the strength of the supporting capabilities each company possesses that reinforce these advantages to result in unique positioning. Durability of Competitive Advantage Period. Companies often display superior economics over the short term due to favorable product cycles, customer preference, temporary structural or tactical advantages or other components. As the Adviser's desire is to own companies in the Fund that can be kept in the portfolio for many years, a core part of the Adviser's process is to consider what the company might look like over a period of ten or more years.

The Adviser considers whether the company seems likely to grow, to increase profitability through additional products or other offerings, and if it has optionality and the financial capacity that may make it a larger, stronger business in the future than it might be today. The Emerging Markets Fund's investment portfolio is focused, generally composed of at least 30 investment positions, with the 10 largest positions representing not more than 60% of the Emerging Markets Fund's net assets. The Emerging Markets Fund may not invest more than 10% of its net assets in securities of companies that are not emerging market companies. To limit the risks associated with highly concentrated holdings, the Emerging Markets Fund does not invest more than 5% of its net assets in any one class of security of any one issuer at the time of purchase.

If a portfolio holding grows to be greater than 5% of the Emerging Markets Fund's net assets the Adviser may not add additional capital to the position. However, the Adviser may maintain an allocation above 5% indefinitely, provided it continues to meet the Adviser's investment criteria. While investing in a particular sector is not a principal investment strategy of the Emerging Markets Fund, its portfolio may be significantly invested in a sector as a result of the portfolio management decisions made pursuant to its principal investment strategy.

TMFEX Costs and Fees

TMFEX costs about $115 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.15%
• Gross expense ratio: 1.34%
• Portfolio turnover: 7%
• Brokerage commissions: 1.59 bps of average net assets (SEC N-CEN)

TMFEX Debt Constituents

No individual debt constituents are reported in Motley Fool Emerging Markets Fund's latest SEC N-PORT filing.

TMFEX Prospectus and SEC Filings

Official Motley Fool Emerging Markets Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-01-16
• Prospectus (485BPOS) — filed 2018-01-17
• Prospectus (485BPOS) — filed 2017-03-20
• Annual census (N-CEN) — filed 2018-11-14

Related Funds

Other Emerging Markets Growth Equity funds tracked on ABC INVEST:

• Motley Fool Global Opportunities Fund (FOOLX)
• AMG Managers Special Equity Fund (MGSEX)
• CLS Global Aggressive Equity Fund (CLACX)
• Cavalier Growth Opportunities Fund (CATEX)
• The Tocqueville Opportunity Fund (TOPPX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.