The fund’s frontier market exposure has also shrunk, from a high of nearly 16% last year to about 7% today. One-third of that loss stemmed from the MSCI benchmark’s reclassification of Qatar and the United Arab Emirates as emerging market countries. The rest came from the fund’s sale of two stock holdings. The fund also modestly increased its exposure to Russia at the end of 2014 as the falling stock market there dragged down some good, well-valued companies with it.

Even though Johnson and his team take economic and political conditions into account, stock selection remains their dominant tool for beating the benchmark. The portfolio holds around 80 stocks, which is fairly concentrated for an emerging markets fund. To qualify for inclusion in the fund, companies must have qualities such as a clear competitive advantage, strong management, little or no debt and potential for growth. The turnover in the fund is a relatively low 28%.