July 2020 – Andrew Foster continues to flag caution over markets as weak economic and corporate fundamentals combine with high valuations. He notes that in contrast to the broader EM, over half of the Growth and Income Fund’s constituents are expected to produce positive earnings growth this year. Lastly, Andrew expresses grave concerns for the future of economic and political freedoms in Hong Kong, given the new security law imposed by China.

July 2020 – Paul Espinosa describes how large cap, cyclical companies led performance of the Value Fund, while small caps detracted from performance. He explains that the Fund is adding large caps and “gems” (companies with high returns on capital, good management and capital discipline) with once-in-a-cycle valuation levels. Paul highlights the addition of Mondi, a global packaging and paper company, to the portfolio.

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.