How did the Fund perform last year and what affected its performance?

The reporting period’s market environment was largely driven by speculation about inflation and when and by how much the U.S. Federal Reserve (“the Fed”) and other central banks would begin cutting rates. Alongside this interest rate story was the continuing prospect of an artificial intelligence boom, driving up the values of A.I.-related tech and semiconductor companies. And even though markets moved sideways in Q3 2024 as investors rotated out of growth and tech stocks and back into value and small cap securities, they could not undo the reporting period’s significant influence driven by those mega-cap high-flyers. With the Fed finally cutting rates in September and by 50 bps, the year-long speculation about the timing of the Fed’s directional shift was finally put to rest, and markets ended the year-long period with significant gains and at the highest levels.  On the sector front, Industrials and Utilities were leaders with positive performance coupled with large weights within the fund.

Key Fund Statistics as of 9/30/2024

How did the Fund perform last year and what affected its performance?

The reporting period’s market environment was largely driven by inflation and when and by how much the U.S. Federal Reserve and other central banks would begin cutting rates. Alongside this interest rate story was the continuing prospect of an Artificial Intelligence boom, driving up the values of A.I.-related tech and semiconductor companies. Risk assets registered positive gains despite pronounced market volatility. Developed markets (DMs) posted positive returns but underperformed emerging markets (EMs), as EM equites performed strongly, supported by the new stimulus in China. India, Taiwan and China were the top drivers of the Fund's return. Power Grid Corporation of India Ltd., NTPC Ltd., and Hero MotoCorp Ltd., were the top contributors to the Fund's performance. Yuexiu Property Company, China Resources Land, and Orbia Advance Corp. were the bottom contributors to the Fund's return.

Key Fund Statistics as of 9/30/2024

How did the Fund perform last year and what affected its performance?

All markets in the Asia Pacific region had a strong fourth quarter 2023 showing, with the exception of China, where the lackluster recovery from COVID-19 restrictions as well as real estate woes soured investor sentiment. Of the major emerging markets economies, China was the only underperformer in the first quarter of 2024 as it continued to struggle without any meaningful policy stimulus. However, China did rebound from its January low as the People’s Bank of China cut the five-year loan prime rate to 3.95% from 4.20% in a move to boost economic growth. China’s economic growth stabilized in the second quarter of 2024 but remained constrained, with weak consumer sentiment and ongoing challenges in the property sector. Asia Pacific countries reported positive returns during the third quarter of 2024, with China as one of the top performers. China’s economy bounced back, increasing investor confidence in its resilience. Both onshore and offshore Chinese equities posted positive returns year to date, with Materials, Industrials, and Communication Services sectors leading the way.

Key Fund Statistics as of 9/30/2024

How did the Fund perform last year and what affected its performance?

Performance information is not provided since the Fund has less than six months of operations. 

Top Ten Sectors

How did the Fund perform last year and what affected its performance?

The reporting period’s market environment was largely driven by speculation about inflation and when and by how much the U.S. Federal Reserve ("the Fed") and other central banks would begin cutting rates. REIT performance during the period can be summed up by simply understanding that the asset class is interest rate sensitive and historically a safe haven for investors looking for alternative income streams. Treasury yields declined during the first fiscal quarter and REITs gained over 15% during that period. Then, as the Fed did not pull the trigger on a speculated rate cut in either of the next two quarters, REITs lost value coinciding with those decisions. Finally, as the fiscal year was coming to a close, the Fed finally cut rates in September by 50 basis points and the sector gained another 15%.

Key Fund Statistics as of 9/30/2024

How did the Fund perform last year and what affected its performance?

The reporting period’s market environment was largely driven by speculation about inflation and when and by how much the U.S. Federal Reserve (“the Fed”) and other central banks would begin cutting rates. REIT performance during the period can be summed up by simply understanding that the asset class is interest rate sensitive and historically a safe haven for investors looking for alternative income streams. Treasury yields declined during the first fiscal quarter and REITs gained over 15% during that period. Then, as the Fed and other countries such as the Bank of England did not pull the trigger on speculated rate cuts in either of the next two quarters, REITs lost value coinciding with those decisions. Finally, as the fiscal year was coming to a close, the Fed finally cut rates in September by 50 basis points.  This action followed rate cuts in many developed countries during the period and the sector gained another 16% as a result.