HLMEX – Q2 2019 Commentary
The Harding Loevner Emerging Markets Equity Fund returned 1.84% during the quarter, outpacing the benchmark by 110 bps. The team continues to monitor the ongoing trade war but uses short term price movements to take advantage of valuations on long term growth companies.
TIREX – Q2 2019 Commentary
The TIAA Real Estate Securities Fund outperformed its primary index during the quarter and real estate securities continued to perform well on a YTD basis. Given the continued low interest rate environment, investors have sought yield in equities, and the real estate sector has benefited significantly. The team remains focused on long term growth companies with superior balance sheets.
TCPNX – Q2 2019 Commentary
The Touchstone Impact Bond Fund outperformed its benchmark during the second quarter, helped by its allocation to spread products, specifically corporates and MBS. The team is aware of the challenging environment but believes that a fairly strong U.S. economy and low global yields make the United States fixed income market a favorable place in which to invest.
HILIX – Q2 2019 Commentary
The Hartford International Value Fund outperformed its benchmark during the quarter and maintains its strong relative long term performance numbers compared to peers. Value continues to underperform growth and quality in developed international markets but both of those factors are becoming more and more expensive on a historical valuation basis.
WATFX – Q2 2019 Commentary
Western Asset Total Return Bond Fund outperformed the Agg during the quarter and now leads the benchmark by almost nearly 100 bps over the past year. The strategy benefited from its credit exposure and slightly extended duration relative to the benchmark during the quarter. The team expects global growth to be resilient on the back of steady U.S. growth, improving domestic conditions in Europe, and signs that sustained monetary and fiscal stimuli across Asia are gaining traction.
LISIX – Q2 2019 Commentary
The Lazard International Strategic Equity strategy outperformed the EAFE benchmark during the quarter, driven by positive stock selection. Global macroeconomic data has continued to slow and it is unclear if the Fed’s loosening of economic policy will be enough to dampen the slow down. This does provide some relative buying opportunities for the team as certain names have heightened valuations backed by lower interest rates.
TIREX – Q1 2019 Commentary
The TIAA CREF Real Estate Fund outperformed its REIT benchmark during the quarter as nearly all real estate sectors posted double digit returns. The team continues to focus on long-term, growth oriented stocks with superior balance sheets. Improvements in the U.S. economy including wage gains and positive employment numbers are positives for REITs.
HLMEX – Q1 2019 Commentary
The Harding Loevner Emerging Markets Fund outperformed its benchmark during the quarter driven primarily by strong stock selection. The team held onto names that were out of favor at the end of 2018, and these positions bounced back to help the fund return over 14%. The team continues to focus on picking growth oriented names with sustainable long term investment advantages.
MWTIX – Q1 2019 Commentary
The MetWest Total Return Bond Fund outperformed the Barclays Agg during the quarter as they were helped by duration positioning and legacy asset backed positions. The team believes that the Fed has indicated its future course of action may be swayed by market movements, and we could have possibly reached the end of the current hiking cycle.
BEXIX – Q1 2019 Commentary
The Baron Emerging Markets Equity Fund outperformed its benchmark during the quarter as EM equities bounced back to start the year. Many of the most impaired names recovered and Baron had incremental gains in all but two equity sectors. Baron believes that China will continue to surprise on the upside in 2019 helping drive broad EM performance.
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