Nomura Emerging Markets Fund Delivers Strong Q2 2026 Results

Performance OverviewThe Nomura Emerging Markets Fund Institutional Class shares delivered better results than its benchmark, the MSCI Emerging Markets Index net, throughout the second quarter of 2026. This outperformance came despite a challenging market environment where various sectors showed mixe

Performance Overview

The Nomura Emerging Markets Fund Institutional Class shares delivered better results than its benchmark, the MSCI Emerging Markets Index net, throughout the second quarter of 2026. This outperformance came despite a challenging market environment where various sectors showed mixed movements across emerging economies. The fund benefited from strategic positioning that helped it capture gains while mitigating downside risks in key areas.

Key Contributors to Results

• An underweight allocation to the financials sector proved advantageous for relative returns, with the decision to reduce exposure particularly to Chinese financial institutions playing a notable role in avoiding underperforming areas during the period.
• Overall sector allocation decisions supported the fund's ability to navigate volatility effectively, allowing it to maintain a competitive edge against the broader index.

Detractors from Performance

Stock selection within the energy sector weighed on overall results, especially holdings such as Reliance Industries Ltd. based in India. This position faced headwinds from fluctuating commodity prices and regional economic factors that impacted investor sentiment during the quarter. The fund continues to evaluate such exposures carefully to balance potential opportunities with risk management considerations.

Market Context

The fund's benchmark, the MSCI Emerging Markets Index net, posted a robust return of 24.1 percent in US dollar terms over the second quarter of 2026. Positive momentum was largely driven by information technology stocks, particularly those located in South Korea and Taiwan, even as late-quarter selling pressure emerged in some segments. These developments highlight the dynamic nature of emerging market equities and the importance of active management in identifying resilient opportunities.