Chief Investment Officer, Derek Izuel, featured in Advisor Perspectives with Shelton Capital Management’s 2026 Investment Outlook.
Overview
The fund seeks to achieve long-term capital appreciation by investing in a concentrated portfolio of 30-50 stocks using a proprietary process that focuses on identifying companies that generate consistent internal returns on capital in order to create shareholder value. The fund invests its assets in equity securities of non-U.S. companies located in countries with emerging markets, but may also invest in companies domiciled in developed markets.
Fund Objective
The Shelton Emerging Markets Fund seeks to achieve long-term capital appreciation.
How the fund works
EMSQX is managed as an actively managed emerging markets equity strategy. The portfolio management team uses a proprietary process — Inside, Outside, Upside — that focuses on identifying companies that generate consistent internal returns on capital to create shareholder value.
Where EMSQX can fit
EMSQX is designed to serve investors and advisors seeking long-term equity exposure through an actively managed emerging markets strategy, and for portfolios where international exposure is intended to complement broad-market equity allocations.
The Fund may fit in portfolios looking for:
- A concentrated, actively managed emerging markets equity strategy.
- Long-term capital appreciation through a disciplined, research-driven process.
- Exposure to fast-growing developing markets through a focused portfolio of 30-50 stocks.
- A strategy that combines data science and fundamental research for portfolio construction.
- A mutual fund structure suitable for use in advisor-managed portfolios and retirement accounts.
How Shelton Approaches Emerging Markets
Proprietary process
The strategy uses a distinctive Inside, Outside, Upside framework to evaluate companies. The team focuses on identifying businesses with consistent internal returns on capital, strong competitive positioning, and attractive upside potential.
Data science and machine learning
The portfolio management team uses data science and machine learning to access insight into the range of possible future outcomes, focusing on those believed to deliver strong performance while contributing to the risk profile of the portfolio.
Concentrated, high-conviction portfolio
The fund holds 30-50 stocks with a high active share and relatively lower tracking error, giving the portfolio management team the ability to pursue conviction-weighted positions in companies they believe will create shareholder value.
Why investors consider an emerging markets mutual fund
- Access to fast-growing, developing markets through an actively managed strategy.
- Concentrated portfolio (30-50 stocks) with high active share and relatively lower tracking error.
- Proprietary research process combining fundamental analysis with data science.
- International diversification opportunity categorized as Diversified Emerging Markets by Morningstar®.
- Mutual fund structure suited to advisor-managed portfolios and retirement accounts.
- May complement broader equity allocations with a differentiated international approach.
Management Team
Derek Izuel, CFA
Tony Jacoby, CFA
Contact Us for More Information
We have a team of professionals dedicated to supporting the needs of our advisor clients.
Important Information
It is possible to lose money by investing in the Fund. Investors should consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Fund. To obtain a prospectus, visit www.sheltoncap.com or call (800) 955-9988. A prospectus should be read carefully before investing.
There may be additional risks associated with international investing involving foreign, economic, political, monetary, and/or legal factors. International investing may not be for everyone. The information contained in this document is given on a general basis without obligation and on the understanding that any person acting upon or in reliance on it, does so entirely at his or her own risk. Any projections or other forward-looking statements regarding future events or performance of countries, markets or companies are not necessarily indicative of, and may differ from, actual events or results. This information is intended to highlight issues and not to be comprehensive or to provide advice.
The MSCI Emerging Markets Index captures large and mid cap representation across 26 Emerging Markets (EM) countries (Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates).
With 1,403 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.
Distributed by RFS Partners, a member of FINRA, and affiliate of Shelton Capital Management.
INVESTMENTS ARE NOT FDIC INSURED OR BANK GUARANTEED AND MAY LOSE VALUE.
