Asset Management Secular drivers and trends markets. But more importantly, they have all established strong competitive advantages (in the form of brands, distribution, innovation, etc.) that allow them to generate high margins and high returns with strong visibility as they compete in a rational and benign competitive environment. We believe the continued strength and dominance of these business models are the strategic reasons to invest in emerging market companies over the long term. While recent months have been disruptive, in our view, not much has changed fundamentally. Donald Trump’s policy decisions and the U.K.’s exit from the European Union will not determine whether consumers in Asia continue to brush their teeth, open bank accounts, eat snacks, drink tea or use hair oil.

When we look back in 5-10 March 2017 years’ time, we doubt those events will be the determining factors of the portfolio’s return. To conclude, we are confident about the long-term prospects of our holdings, and recent political events have not changed that. The strategic investment case continues to look attractive for emerging markets generally, but even more so at a stock level. As we move through 2017, we remain optimistic.

Whether the favorable secular growth drivers and encouraging bottom-up fundamentals will be reflected in the 2017 performance of emerging markets is anyone’s guess, but we are confident it will result in solid returns on a 5-10 year investment horizon. All investments involve risk, including the possible loss of principal. Investing internationally, especially emerging markets, involves additional risks such as currency, political, accounting, economic and market risk. This presentation may contain targeted returns and forward-looking statements. “Forward-looking statements,” can be identified by the use of forward-looking terminology such as “may,” “should,” “expect,” “anticipate,” “outlook,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof, or variations thereon, or other comparable terminology. Investors are cautioned not to place undue reliance on such returns and statements, as actual returns and results could differ materially due to various risks and uncertainties.

This material does not constitute investment advice. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors should seek advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized.

Investment involves risk. Market conditions and trends will fluctuate. The value of an investment as well as income associated with investments may rise or fall.

Accordingly, investors may receive back less than originally invested. LGM Investments is a wholly owned subsidiary of Bank of Montreal. Market conditions and trends will fluctuate, which will cause the value of investments to rise and fall. Accordingly, investors may receive back less than originally invested. BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial Group that provide investment management and trust and custody services. Certain of the products and services offered under the brand name BMO Global Asset Management are designed specifically for various categories of investors in a number of different countries and regions and may not be available to all investors.

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