1
2
3
4
5
6
7
This relative underperformance was mainly due to our underweight position in the South Korean and Taiwanese markets.
The fund nevertheless benefited from the momentum in these markets thanks to our positions in SK Hynix, TSMC and DB Insurance.
On the other hand, our selection of Indian stocks, notably Zinka Logistics and Eureka Forbes, weighed on performance.
India remains our main geographical allocation and a particularly favourable market for finding long-term growth stocks. Our recent trip there reinforced our conviction that the country's outlook is promising, and the recent correction has enabled us to identify attractive entry points.
Furthermore, India appears to be one of the main beneficiaries of the ongoing trade tensions between the United States and the rest of the world.
We are also maintaining significant exposure to artificial intelligence stocks through small- and mid-cap companies active in the semiconductor value chain in Taiwan and South Korea. This segment should perform well once markets return to a more fundamental outlook.
Finally, we have initiated a position in Leela Hotels, an Indian luxury hotel chain. The travel and luxury sector has historically proven resilient during economic slowdowns.
Asia | 80.1 % |
Middle East | 6.2 % |
Latin America | 5.8 % |
Asia-Pacific | 2.9 % |
Eastern Europe | 1.7 % |
North America | 1.6 % |
Africa | 1.3 % |
Europe | 0.5 % |
We seek to select the most attractive companies in the universe of emerging small and mid-caps and underexploited frontier markets through a socially responsible investment approach.
Market environment
In South Korea, equity markets rose sharply in the wake of the election of the Democratic Party and President JM Lee, with his pro-financial market promises.
President Lee announced a target of 5,000 points for the Kospi, nearly double its pre-election level. The focus is on corporate governance reforms, including the rapid adoption of the new Commercial Code, which offers better protection for minority shareholders.
Driven by sustained demand for semiconductors, the Taiwanese market continued to grow.
Although trade talks have taken place between India and the United States, no agreement has been reached at this stage.