October 2020 – Andrew Foster explains that while gains in the EM benchmark were concentrated in Chinese shares, the Growth and Income Fund’s performance was far more geographically diversified. He discusses how the search for better-priced shares led the Fund away from the intersection of East Asia and technology, and toward Brazil. Lastly, Andrew asserts that a surplus of liquidity and confidence has inflated a bubble in China's stock markets.

October 2020 – Paul Espinosa describes how two Value Fund holdings realized value embedded in their balance sheets. He reviews portfolio allocation changes, including two new holdings in Brazil. Lastly, Paul explains why he expects a return to profit and valuation – not company size and revenue growth – as drivers of sustainable investment returns.

Letter to Shareholders – Annual Report

May 2020 – Daniel Duncan offers a perspective on the volatile market environment and explains why he believes most developed market investors can benefit from the diversification offered by investing in the emerging markets. He cautions that while the initial COVID-19-related panic in global capital markets may be over, there could be significant negative economic and market events to come.

Field Notes

Penang, Malaysia

Beijing, China

The investment team shares its insights from research trips, including recent visits to Penang and Beijing.