Emerging Markets: May Monthly Commentary
2 minutes read timeDuring May the fund outperformed the MSCI Emerging Markets index by 3.3%. The largest contributions to performance came from Taiwan and Brazil but on a relative basis we also benefitted from our stock selection in China. Most other markets also had positive contributions with the exception of Korea. We have continued trimming exposures to commodity […]
Emerging Markets Income: April Monthly Commentary
3 minutes read timeA recent survey by Bloomberg of 234 portfolio managers indicated that 20% believed that emerging markets have sufficiently decoupled from the US to independently make positive returns. A further 48% believed they could still be negatively impacted by US malaise, but nevertheless still outperform. We’re glad to see some of the tectonic shifts we’ve been […]
Emerging Markets: April Monthly Commentary
2 minutes read timeDuring April the fund outperformed the MSCI Emerging Markets Total Return index by 0.6%. The outperformance was primarily driven by South Korea with additional contribution from Brazil, China and the UAE. The largest drag on performance this month was Taiwan. We did not make major changes to overall allocations this month, with Taiwan, Korea and […]
Emerging Markets: March Monthly Commentary
3 minutes read timeDuring the first quarter of 2023 the fund outperformed the MSCI Emerging Markets index by 3.3%. Most major markets including Taiwan, China and Mexico contributed positively to relative performance, as did the fund’s avoidance of India. The notable exception was Brazil where a series of missteps by the Lula government kept interest rates high and […]
Emerging Markets Income: March Monthly Commentary
3 minutes read timeThe etymology of ‘bankruptcy’ is from the Renaissance era meaning ‘broken bank’, which was quite appropriate last month for two such Anglo-Saxon institutions. So far contagion in the emerging world has been very limited, but the feedback loops will last for a while. The most relevant will be tighter credit in the US private sector, […]
Emerging Markets: February Monthly Commentary
3 minutes read timeDuring February the fund outperformed the MSCI Emerging Markets index by 1.2% even as equity markets pulled back from the strong start to the year. A number of markets contributed positively this month, with our stocks in Taiwan, China, Mexico, Greece and the UAE all performing well. Brazil and South Korea were both drags on […]
Emerging Markets Income: February Monthly Commentary
3 minutes read timeOver the course of February, the fund declined by 1.37% as markets continued to fret about the possibility of a recession, the propensity of the Federal Reserve to trigger one or that it’s the inevitable result of the US and European banking system struggling to adjust from years of abnormally low interest rates. With the […]
Emerging Markets Income: January Monthly Commentary
3 minutes read timeIn January the fund appreciated by 3.6% as markets, particularly in Asia, were buoyed by the prospect of the Chinese re-opening. China is the only country globally with supportive policy action combined with a benign rates environment and so we have added very selectively to positions where we see extreme valuation discounts (one position had […]
Emerging Markets: January Monthly Commentary
2 minutes read timeDuring January the fund outperformed the MSCI Emerging Markets by 3.6%. The largest country contribution to relative performance was from India, where we have no exposure due to high valuations. Most markets where we are invested saw a strong rally during the month, led by Korea, Taiwan, Indonesia and Mexico. Stock selection was also a […]
Emerging Markets Income: December Monthly Commentary
3 minutes read timeIn December the fund declined by 2.75% leaving the return for the full year since launch in June at -0.3% adjusted for dividend distributions. On January the 3rd the fund went ex-dividend for the fourth quarter payment of £0.166, a yield of 1.7%, bringing the total distribution since inception in June to £0.634, which annualises […]
