July 2020 – Andrew Foster explains that stock markets throughout the EM marched higher, with Chinese stocks dominating the surge, despite poor and uncertain corporate performance. He remains concerned that stocks in the developing world – notably China – are poised for weakness. Andrew also reports that the Growth and Income Fund’s holdings are likely, in aggregate, to produce modest earnings growth in 2020, even as profits are expected to contract for the broader EM.

July 2020 – Paul Espinosa describes how the Value Fund is adding “gems” – large companies with above-average returns on capital and high caliber management – at attractive valuation levels. The additions are increasing the liquidity and scalability of the Fund.

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.