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Equities Commentary, November 2019

Please find below a summary of performance, activity and outlook from November 2019 from our fund managers.

Jonathan Pines Portfolio Manager

Market and Performance review

The MSCI All Countries Asia ex Japan Index returned 0.14% in US Dollar terms in November. The Fund outperformed the benchmark on a relative basis over the month. The outperformance resulted primarily from our country overweight and underweight allocations. Stock selection in Korea and Thailand helped offset losses from names in China.

Tingyi, a Chinese manufacturer of instant noodles and beverages, contributed the most to relative returns. Top-line growth is expected to accelerate in the second half of 2019 and 2020 as Tingyi’s noodles business recovers market share as a result of promotions and improved channel margin and its premiumisation strategy supports growth in beverages. Simplo Technology, a Taiwan manufacturer of lithium batteries, rose on strong Q3 2019 sales driven by market share gains for its notebook business as its peers de-prioritise notebooks, new-product ramp up from its key customers (iPhone, AirPods, iPad launches), pull-in demand ahead of the 15th December tariff rises, along with successful diversification into e-bikes and data centres. Hon Hai Precision moved higher after posting solid Q3 2019 results, notably gross margin rebounded to 6.01%, catalysed by the higher yield rate of Hon Hai’s iPhone assembly business.

Kunlun Energy fell as disruption to one of its LNG terminals, damaged by a typhoon in mid-September, is expected to have a 2% impact to 2019 earnings. Uncertainty around national pipeline company related assets restructure remains an overhang of Kunlun’ share price. ASE Technology, a Taiwanese semiconductor testing and assembly company, moved lower driven by market fluctuations absent any stock specific news.

Weibo, a Chinese social media company, fell despite reporting in-line Q3 2019 results due to soft Q4 2019 revenue guidance coupled with an uncertain 2020 ad outlook.

Outlook

Smaller Cap and Value stocks in Asia ex Japan have now underperformed substantially for several years. There is compelling value in the Fund (perhaps the most compelling in the Fund’s history), with many of our stock picks, while consistently profitable, trading far below net cash on the balance sheet. This, plus an elevated dividend yield for the Fund in the context of perhaps record low risk-free interest rates, we believe implies high potential for strong absolute performance.

Gary Greenberg, Portfolio Manager

Market and Performance Review

The benchmark MSCI Emerging Markets Index returned -0.14% in November. Emerging Markets slipped into negative territory and underperformed Developed Markets amid weak manufacturing and consumer data in China and no conclusion in sight to the phase one trade deal between China and the US. The ongoing protests in Hong Kong raised concerns that the situation could disrupt the trade negotiations. Pakistan was the best performing market while Chile fell the most as political uncertainty and social unrest impacted the stock market.

The Fund outperformed the benchmark index in relative terms over the period. The outperformance was driven primarily by stock selection in the United Arab Emirates, Russia and South Korea. The Fund overweight and underweight country positions also contributed.

NMC Healthcare, an integrated private healthcare operator in the Middle East & Europe, contributed the most to relative returns. Management reiterated financial year 2019 guidance, issued initial 2020 guidance anticipating double-digit growth and tabled a $200mn share buyback for shareholder approval. Sentiment was further boosted by several brokers highlighting the dislocation between NMC’s share price and positive fundamentals. Shares in Yandex, the dominant search engine in Russia, reacted sharply to management proposing governance changes that might avoid adverse regulation and a new share buyback equivalent to about 2.5% of capital. Alibaba, the Chinese e-commerce company, rose after delivering solid quarterly results above expectations, and following the listing in Hong Kong (with fungibility of shares) which helped assuage investor fears of potential US sanctions. The company also benefited from the November MSCI rebalance which saw its benchmark weight increase.

Accton Technology, a Taiwanese manufacturer of high-speed 100G and 400G switch solutions, fell as investors took profits following strong performance year-to-date. Autohome, a Chinese online platform for auto sales, fell on weaker Q4 2019 guidance despite reporting Q3 2019 results that were in line with expectations. The auto market has been depressed this year and the outlook remains challenged. Shares in Baozun, a leading China e-commerce services provider, fell sharply despite reporting strong Q3 2019 gross merchandising volume (GMV) growth. Weak sales guidance (a growth of 23%-25%, which was at the lower end of the estimates), combined with a surprisingly high delta between the GMV & sales and margin pressure, concerned investors.

Outlook

Slowing global economies coupled with heightened geopolitical risks have led to a deteriorating economic outlook. Globally, central banks are in an easing cycle and bond yields are likely to remain lower for longer. Global Purchasing Managers' Index (PMI) data are already pointing to a manufacturing recession in many countries. We expect the services sector to follow suit, US employment levels to start to fall, and that monetary responses will be insufficient to spark a global rebound.

Recognition of a global synchronised downturn could weigh heavily on cyclical stocks, pushing them towards historically low valuations. Quality names should perform relatively better. This downbeat economic scenario could create opportunity in the cyclical part of the market, as we anticipate a consensus would form around the need for a fiscal spending boost, starting in Europe, spreading to the US and from there to Emerging Markets over the next 18 months. Until this scenario becomes evident, however, the Fund will remain tilted towards quality. In any case the Fund already maintains some exposure to quality cyclicals that will benefit when the global economy turns up.

Gary Greenberg, Portfolio Manager

Market and Performance review

The benchmark MSCI Emerging Markets SMID Net Total Return Index fell 0.67% in US Dollar terms in November. Emerging Markets slipped into negative territory and underperformed Developed Markets amid weak manufacturing and consumer data in China and no conclusion in sight to the phase one trade deal between China and the US. The ongoing protests in Hong Kong raised concerns that the situation could disrupt the trade negotiations. Pakistan was the best performing market while Chile fell the most as political uncertainty and social unrest impacted the stock market.

The Fund underperformed the benchmark index in relative terms over the month. The underperformance was driven primarily by stock selection in Taiwan, Brazil and Turkey. This was partially offset by stock selection in the United Arab Emirates and Russia.

NMC Healthcare, an integrated private healthcare operator in the Middle East & Europe, rose as management re-iterated financial year 2019 guidance and issued positive 2020 guidance. Sentiment was further boosted by several brokers highlighting the dislocation between NMC’s share price and positive fundamentals. Yandex, the dominant search engine in Russia, reacted sharply to management proposing governance changes that might avoid adverse regulation and a new share buyback equivalent to about 2.5% of capital. China Communications Services, the largest telecommunications infrastructure service group in China, rose after China’s major telecom operators rolled out commercial 5G services nationwide. The company should benefit from rising telecom infrastructure capex during the 5G upcycle.

Baozun, a leading China e-commerce services provider, fell sharply despite reporting strong Q3 2019 gross merchandising volume (GMV) growth. Weak sales guidance (a growth of 23%-25%, which was at the lower end of the estimates), combined with a surprisingly high delta between the GMV & sales and margin pressure, concerned investors. Autohome, a Chinese online platform for auto sales, fell on weaker Q4 2019 guidance despite reporting Q3 2019 results that were in line with expectations. The auto market has been depressed this year and the outlook remains challenged. Accton Technology, a Taiwanese manufacturer of high-speed 100G and 400G switch solutions, fell as investors took profits following a strong performance year-to-date.

Outlook

Slowing global economies coupled with heightened geopolitical risks have led to a deteriorating economic outlook. Globally, central banks are in an easing cycle and bond yields are likely to remain lower for longer. Global Purchasing Managers' Index (PMI) data are already pointing to a manufacturing recession in many countries. We expect the services sector to follow suit, US employment levels to start to fall, and that monetary responses will be insufficient to spark a global rebound.

Recognition of a global synchronised downturn could weigh heavily on cyclical stocks, pushing them towards historically low valuations. Quality names should perform relatively better. This downbeat economic scenario could create opportunity in the cyclical part of the market, as we anticipate a consensus would form around the need for a fiscal spending boost, starting in Europe, spreading to the US and from there to Emerging Markets over the next 18 months. Until this scenario becomes evident, however, the Fund will remain tilted towards quality. In any case the Fund already maintains some exposure to quality cyclicals that will benefit when the global economy turns up.

Geir Lode, Portfolio Manager

Market and Performance Review

Global Equity markets advanced in November with the MSCI World Index returning 2.79% in US Dollar terms, propelled by the US against a backdrop of positive earnings surprises (albeit against lower expectations) and marginally more positive noises surrounding the US-China trade tensions. The Information Technology and Health Care sectors were notably strong performers, while Utilities and Real Estate were the laggards. The Alpha Model highlighted a clear preference for Growth, perhaps a sign of declining earnings expectations, while Sentiment and Corporate Behaviour were largely avoided.

The Fund outperformed the benchmark index over the period. From a sector viewpoint, the largest contributions came from selection in Communication Services, which was offset by detractions from selection in Health Care and Information Technology. From a regional viewpoint, the detraction from selection in North America was the largest influence.
Caltex Australia, Walt Disney and Discovery were the largest contributors. Caltex Australia increased sharply after Alimentation Couche-Tard bid for the company. Walt Disney increased after reporting that its new streaming service, ‘Disney+’, was met with extraordinary consumer demand. Discovery reported earnings ahead of consensus expectations with both its US and International operations seeing growth in distribution and advertising revenues.

The largest individual detractors were Dollar Tree, Duke Energy and Zoetis. Dollar Tree reported weaker-than-expected earnings due to lower-thanexpected margins with management highlighting impacts from tariffs, greater demand for consumables and higher labour costs. Duke Energy reported better-than-expected earnings driven by favourable weather conditions and higher utility growth. The share price fell though as the company issued $2.5bn of equity to fund the construction of the Atlantic Coast Pipeline. Zoetis fell despite reporting solid earnings that were driven by continued strong momentum in companion animals, which led the company to increase guidance. However, the shares have been strong all year and there was a bout of profit-taking.

Outlook

As equity markets hit new highs in 2019, uncertainty remains high amid global macro headwinds. As such, caution is advised as growth expectations have been dampened, due in large part to trade tariffs. Despite this weakened outlook there is an appetite for recovery, which is reflected in the market reaction to any progress in the US-China trade dispute. Alongside the trade tariffs, some big challenges remain, particularly with regulatory and wage pressures, although these issues can be overcome through innovation, a focus on cost-cutting and productivity gains. Investors will also need to be vigilant heading into the US election. As the two main political parties battle it out over the next 12 months, key issues of healthcare, jobs and climate could create significant noise over the ensuing year in the absence of visibility into the next Presidential term.

In the UK, the Conservative Party won a resounding majority in the UK general election and although this was anticipated by the polls, the margin of victory was surprising. The initial market reaction was positive as the result removed the uncertainty surrounding the UK’s direction of travel. However, business sentiment is likely to be dampened over the next couple of years as the precise trading arrangement between the UK and Europe is negotiated. As such, until there is further clarity and some positive economic signals our focus remains on revenues from outside the UK due to the subdued domestic consumption.

Hamish Galpin, Portfolio Manager

Market and Performance review

The MSCI World Index returned 3.24% in US Dollar terms in October. The Fund underperformed the benchmark on a relative basis over the period.

LivaNova was the largest contributor. It reported better-than-expected earnings and reiterated guidance for 2019. It also announced plans to restructure its heart valve business and discontinue a product line, which is expected to improve profitability. Bio-rad Laboratories reported better-than-expected earnings fueled by its life science and food safety products.
The share price of Technogym increased depsite there being little specific news on the company.

The largest detractor was Tullow Oil, which fell after the company said it was reassessing the commercial viability of its Guyana oil wells after discovering low quality, heavy oil. Horiba fell modestly in November following strong share price performance the previous month. Aptar Group fell after reducing guidance for Q4 earnings, which was due to customer destocking in its personal care and beauty businesses.

Outlook

Declining economic growth has been a recent concern for the market, exacerbated by the tariff dispute. We remain of the view that we are in a structurally low growth environment (and a flat yield curve one) which may mean occasional “recessions” in key markets, as defined by two quarters of negative GDP. This does not mean, however, that a material recession is imminent despite the longevity of the current economic expansion.

The low growth environment should favour Small Caps as an asset class. The heighted challenge for active managers currently is to divine the best stocks in a scenario of extreme.

James Rutherford, Portfolio Manager

Market and Performance Review

The FTSE All-World Europe Index rose by 2.68% in November, driven by more cyclical areas of the market. The Fund outperformed the benchmark index over the same period. The largest contributions came from the overweight positions in Technology and stock selection in Oil & Gas and Health Care, which were partially offset by detractions from selection in Financials, Industrials and Consumer Goods.

The largest individual contributors to relative performance were Qiagen, Siemens Gamesa and Amadeus. Qiagen made gains after rumours surfaced that Thermo Fisher would probably bid for the company. Siemens Gamesa rose after it was reported that it was considering buying Iberdrola’s stake in the firm. Amadeus reported better-than-expected earnings, driven by its IT solutions division after it acquired TravelClick. It also benefited from a rise in non-air travel bookings.

The largest individual detractors to our performance were Pandora, Lonza Group and Lundin Petroleum. Pandora reported disappointing earnings, although there were signs that like-for-like sales were gradually improving after the brand relaunch and positive reviews for new-season products.
Lonza fell after its CEO resigned, which took investors by surprise. Lundin Petroleum reported solid results at the end of October, but declined alongside the Energy sector as a whole.

Portfolio activity was limited to actively managing existing positions in November.

Outlook

The US-China trade dispute still appears to be the single most important issue for investors. While the phase-one deal between the US and China was seen by many as a vital breakthrough, no formal agreement has been reached and the difficult part clearly lies ahead. With progress slow, we should expect some volatility as investors react to the progress, or lack thereof, by switching between ‘risk-on’ and ‘risk-off’ modes.

Closer to home, the Conservative Party won a resounding majority in the UK general election. Although this was expected, the margin of victory was surprising. The initial market reaction was positive as the result removed the uncertainty surrounding the UK’s direction of travel. The new government will now be able to move unencumbered into the next stage of the Brexit process.
As we head into 2020, we expect that earnings expectations will be revised down, which should support European equities. The lack of sustained economic growth should also suit our approach, which seeks companies that are likely to grow regardless of the economic environment.

Mark Sherlock, Portfolio Manager

Market and Performance Review

The Russell 2500 Index rose 4.29% in US Dollar terms in November. Global Equity markets rose in November led by Developed Market equities. Optimism on the potential progress of a trade deal, along with early signs that the contraction in the manufacturing sector might be coming to an end, influenced investor sentiment. The November IHS Markit PMI index registered a welcome upturn in activity across manufacturing and services as both sectors indicated a rise in workforce numbers. The US and China are yet to conclude negotiations over a “phase one” trade deal. However, investors appeared content with no further escalation in tariffs US bond yields rose as concerns of a global recession moderated

The Fund underperformed the benchmark index on a relative basis over the month. Underperformance was driven by stock selection, notably in Health Care and Producer Durables.

LivaNova (medical technology) contributed the most after Q3 2019 results beat EPS expectations and Management reiterated its 2019 guidance. The company also announced plans to restructure its heart valve business and discontinue its Caisson Transcatheter Mitral Valve Replacement (TMVR) program, which will likely improve LivaNova’s profitability. ICU Medical, a leading provider of infusion therapy (IV) equipment and supplies, rose after Q3 2019 results were ahead of expectations. Ansys (engineering simulation) rose after delivering solid Q3 2019 results and announcing a strategic partnership with Rockwell Automation for the development and offering of digital twin products.

Cubic Corporation (transport payment systems) fell the most after reporting a mixed set of Financial Year Q4 2019 results that disappointed investors on profit expectations and lowered guidance. Shares in AO Smith (residential and commercial water heating and treatment equipment) fell as headwinds in China and higher steel prices have increased volatility in the share price performance. Abiomed (miniature heart pumps) fell after results presented at the American Heart Association (AHA) questioned the safety and effectiveness of Abiomed’s Impella heart pumps. The stock rebounded somewhat after Abiomed responded to the observational analysis.

Outlook

The market appears reasonably priced overall, but in certain areas we are seeing pockets of overvaluation, with individual stock prices decoupling from fundamentals. However, we are still finding value in many parts of the market and remain focused on investing in high-quality companies that should provide a degree of protection in down markets and benefit if the market moves higher.

Lewis Grant, Portfolio Manager

Market and Performance Review

Global Equity markets advanced in November with the MSCI ACWI Index returning 2.44%, propelled by the US against a backdrop of positive earnings surprises (albeit against lower expectations) and marginally more positive noises surrounding the US-China trade tensions. The Information Technology and Health Care sectors were notably strong performers, while Utilities and Real Estate were the laggards. The Alpha Model highlighted a clear preference for Growth, perhaps a sign of declining earnings expectations, while Sentiment and Corporate Behaviour were largely avoided.

Over the month, the Fund marginally underperformed the benchmark index. From a sector viewpoint, the largest contributions came from selection in Communication Services and Financials, which were offset by detractions from selection in Health Care and Information Technology.
From a regional viewpoint, selection was successful in Pacific Free ex Japan, while there were detractions in Emerging Asia and North America.

Walt Disney, Caltex Australia and Discovery were the largest contributors to relative returns. Walt Disney increased after reporting that its new streaming service, ‘Disney+’, was met with extraordinary consumer demand. Caltex Australia increased sharply after Alimentation Couche-Tard bid for the company. Discovery reported earnings ahead of consensus expectations with both its US and International operations seeing growth in distribution and advertising revenues.

The largest detractors were China Resources Gas, Lonza and Hess. China Resources Gas fell amid a bout of profit taking following particularly strong share price performance in October. Lonza fell after its CEO, Marc Funk, announced his departure, which took investors by surprise. Hess fell after Tullow Oil said that it was reassessing the commercial viability of its Guyana wells, where Hess also has operations, due to concerns over the quality of the oil.

Outlook

As equity markets hit new highs in 2019, uncertainty remains high amid global macro headwinds. As such, caution is advised as growth expectations have been dampened, due in large part to trade tariffs. Despite this weakened outlook there is an appetite for recovery, which is reflected in the market reaction to any progress in the US-China trade dispute. Alongside the trade tariffs, some big challenges remain, particularly with regulatory and wage pressures, although these issues can be overcome through innovation, a focus on cost-cutting and productivity gains. Investors will also need to be vigilant heading into the US election. As the two main political parties battle it out over the next 12 months, key issues of healthcare, jobs and climate could create significant noise over the ensuing year in the absence of visibility into the next Presidential term.

In the UK, the Conservative Party won a resounding majority in the UK general election and although this was anticipated by the polls, the margin of victory was surprising. The initial market reaction was positive as the result removed the uncertainty surrounding the UK’s direction of travel. However, business sentiment is likely to be dampened over the next couple of years as the precise trading arrangement between the UK and Europe is negotiated. As such, until there is further clarity and some positive economic signals our focus remains on revenues from outside the UK due to the subdued domestic consumption.

James Rutherford Martin Todd

James Rutherford and Martin Todd, Co-Portfolio Managers

Market and Performance Review

The FTSE World Europe ex UK index rose by 2.59% in November, driven by more cyclical areas of the market. The Fund outperformed the benchmark index over the same period. The largest contributions came from stock selection in Consumer Goods, Health Care, Technology and Utilities, which were partially offset by a detraction from selection in Financials.

The largest individual contributors to relative performance were Qiagen, Siemens Gamesa and ASM International. Qiagen made gains after rumours surfaced that Thermo Fisher would probably bid for the company. Siemens Gamesa rose after it was reported that Siemens were considering buying Iberdrola’s stake in the firm. ASMI reported strong orders driven by next generation logic processes moving to using single-wafer atomic layer deposition (ALD), which has seen the company take market share.

The largest individual detractors to our performance were Lundin Petroleum, Lonza Group and Euronext. Lundin Petroleum reported solid results at the end of October, although declined alongside the Energy sector as a whole. Lonza fell after its CEO resigned, which took investors by surprise. Euronext reported mixed results with revenues below consensus, due to lower revenues from its clearing operations. However, lower operating expenses meant that earnings were modestly ahead of expectations.

Outlook

The US-China trade dispute still appears to be the single most important issue for investors. While the phase-one deal between the US and China was seen by many as a vital breakthrough, no formal agreement has been reached and the difficult part clearly lies ahead. With progress slow, we should expect some volatility as investors react to the progress, or lack thereof, by switching between ‘risk-on’ and ‘risk-off’ modes.

Closer to home, the Conservative Party won a resounding majority in the UK general election. Although this was expected, the margin of victory was surprising. The initial market reaction was positive as the result removed the uncertainty surrounding the UK’s direction of travel. The new government will now be able to move unencumbered into the next stage of the Brexit process.

As we head into 2020, we expect that earnings expectations will be revised down, which should support European equities. The lack of sustained economic growth should also suit our approach, which seeks companies that are likely to grow regardless of the economic environment.

Martin Todd and Mark Sherlock

Martin Todd and Mark Sherlock, Co-Portfolio Managers

Market and Performance review

Global Equity markets advanced in November with the MSCI All Country World IMI Index returning 2.49%, propelled by the US against a backdrop of positive earnings surprises (albeit against lower expectations) and marginally more positive noises surrounding the US-China trade tensions. The Fund outperformed the benchmark index in the same period with significant contributions from our overweight in Health Care and successful selection in Health Care, Industrials, Consumer Discretionary and Utilities. The only meaningful detraction came from selection in Financials.

On an individual stock basis, Qiagen, LivaNova and Ansys were the largest contributors. Qiagen increased after rumours surfaced that Thermo Fisher was likely to bid for the company. LivaNova reported better-than-expected earnings and reiterated guidance for 2019. It also announced plans to restructure its heart valve business and discontinue a product line, which is expected to improve profitability. Ansys reported better-than-expected Q3 results with continued momentum in auto and technology, while margins also improved, and the company raised guidance for 2019.

On the negative side, Emergent BioSolutions, Lonza Group and Bank Rakyat Indonesia detracted the most. Emergent BioSolutions reported strong results that were driven by ACAM2000, its smallpox vaccine, and Narcan, its opioid overdose treatment. However, the company left 2019 guidance unchanged, which led the share price lower. Lonza fell after its CEO resigned, taking investors by surprise. Bank Rakyat Indonesia fell after it was reported that the government was considering cutting rates in Indonesia by 1%.

Outlook

A The US-China trade dispute still appears to be the single most important issue for investors currently. While the phase-one agreement between the US and China was seen by many as a vital breakthrough, agreement has yet to be reached, suggesting that the difficult part still lies ahead. With progress slow, volatility is likely to remain high as investor sentiment switches to the everchanging developments around the negotiations.

Our Sustainable Development Goals-focussed, theme-driven approach has led to a portfolio of companies that have a range of characteristics, with a blend of Growth, Value, cyclical and defensive names. These are companies that we believe will benefit from the emerging growth opportunities arising from countries’ need to meet the 2030 SDGs. They should ultimately generate shareholder value over the longer-term as positive change has a positive effect on their future through-the-cycle earnings. We believe this will help the Fund achieve positive relative returns over time, regardless of the prevailing style preferences or macroeconomic backdrop.

Hamish Galpin, Portfolio Manager

Market and Performance review

The MSCI All Country World SMID Cap Index benchmark returned 2.63% in November.

The Fund underperformed the benchmark index return in November, giving back some of the relative gains following a strong period of outperformance in recent months. Despite the underperformance, there were more significant risers than fallers, with 14 names rising more than 5% and only six declining by more than 5%. Stock selection accounted for the majority of the underperformance, while sector allocation and currency marginally outperformed.

Woodward was the largest contributor. It reported earnings that were marginally behind expectations, but it increased alongside the Aerospace sector. The Cooper Companies increased after receiving FDA approval for its contact lens that slows the progression of short-sightedness in children.
IMCD reported solid earnings with its Life Sciences division performing well, while management reported encouraging performance in South East Asia, India and Japan, offsetting some weakness in China, which has been affected by the trade war.

The largest detractor was Tullow Oil, which fell after the company said it was reassessing the commercial viability of its Guyana oil wells after discovering low quality, heavy oil. Huhtamaki fell modestly in November following strong share price performance the previous month. Aptar Group fell after reducing guidance for Q4 earnings, which was due to customer destocking in its personal care and beauty businesses.

Outlook

Declining economic growth has been a recent concern for the market, exacerbated by the tariff dispute. We remain of the view that we are in a structurally low growth environment (and a flat yield curve one) which may mean occasional “recessions” in key markets, as defined by two quarters of negative GDP. This does not mean, however, that a material recession is imminent despite the longevity of the current economic expansion.

The low growth environment should favour Small Caps as an asset class. The heighted challenge for active managers currently is to divine the best stocks in a scenario of extreme valuations which shows no signs currently of reverting to more normal levels.

Fund performance returns are in base currency of the Fund and are calculated at close of business, gross of management fees. Fund performance returns at a Share Class level are calculated at midday and are net of management fees. Share Class performance returns can be found on the relevant factsheet. Source: Northern Trust.

The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other Hermes communications, strategies or products.

Past performance is not a reliable indicator of future performance. The value of investments and income from them may go down as well as up, and you may not get back the original amount invested. It should be noted that any investments overseas may be affected by currency exchange rates.


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