Emerging Markets: June Monthly Commentary
2 minutes read time During Q2 2023 the fund outperformed the MSCI Emerging Markets index by 5.3%. The largest contribution by some margin came from Brazil this quarter, confirming the market’s status as a high beta play. China also contributed positively relative to the index, with our positions outperforming. Korea, the UAE, Taiwan and some smaller markets also performed […]
Emerging Markets Income: May Monthly Commentary
4 minutes read time In May the fund declined by 0.9%. As we come to the end of one of the most aggressive tightening cycles in decades, it’s probably not surprising that markets have become myopically focused on macro factors. For the past few months it seems like there’s only been three topics under debate: Interest rates in the […]
Emerging Markets Income: June Monthly Commentary
3 minutes read time In June the fund returned +1.25%. We launched this fund with a relatively unorthodox objective for an emerging market equity strategy. Rather than looking to beat the typical EM benchmarks we looked to beat inflation, to generate a real income for investors on a sustainable basis. Of course this is a remit more typical of […]
Emerging Markets: May Monthly Commentary
2 minutes read time During 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 time A 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 time During 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 time During 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 time The 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 time During 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 time Over 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 […]
