This report provides a detailed analysis of the Calamos Emerging Economies Portfolio's performance during the third quarter of 2025, highlighting key drivers of its substantial gains and strategic positioning across various sectors.
Unlocking Growth: Navigating Emerging Markets for Superior Returns
Portfolio's Stellar Performance in Q3 2025: Outpacing Emerging Markets
The Calamos Emerging Economies Portfolio experienced remarkable growth in the third quarter of 2025, significantly exceeding the performance of the broader emerging markets. This strong showing indicates the effectiveness of its investment strategies in a dynamic global landscape.
Sectoral Contributions to Success: Financials Lead, Utilities Underweight
A crucial factor in the portfolio's success was its astute security selection within the financial sector. Strategic investments in this area provided a significant boost. Additionally, an underweight position in utilities proved beneficial, contributing positively to overall returns. However, certain holdings in consumer discretionary and industrial sectors presented challenges, slightly detracting from the otherwise strong performance.
Emerging Markets Surge: A Global Perspective on Q3 Gains
Emerging markets collectively demonstrated robust gains in the third quarter. The MSCI Emerging Markets Index, a key benchmark, registered an impressive 10.95% return in U.S. dollar terms, with an even higher 12.49% in local currency. This widespread positive trend provided a favorable backdrop for the portfolio's performance.
China's Economic Resurgence: Catalysts for Equity Growth
Chinese equities were a standout performer, climbing over 20% during the quarter. This surge was fueled by increased investor interest, driven by the nation's technological advancements and growing optimism surrounding a potential trade resolution with the United States. These factors created a strong tailwind for the portfolio's Chinese holdings.
Strategic Sector Allocation: Tapping into Long-Term Growth Themes
The portfolio's strategic allocation emphasizes several high-growth sectors, maintaining significant exposure to technology, industrials, communication services, and financials. This diversified approach across key emerging markets is designed to capitalize on long-term secular growth trends, positioning the portfolio for sustained success in the evolving global economy.
