Core Insights - Adventist Health System West has completely liquidated its position in the iShares MSCI Emerging Markets ex China ETF (EMXC), selling 837,660 shares valued at approximately $52.9 million during the third quarter [2][7]. ETF Overview - The iShares MSCI Emerging Markets ex China ETF has net assets of $13.1 billion and was priced at $71.08 as of the latest market close, reflecting an 18.5% increase over the past year, compared to a 16% rise in the S&P 500 [3][4]. - The ETF aims to provide targeted exposure to emerging market equities while excluding Chinese securities, utilizing a market capitalization-weighted index methodology [6][9]. Investment Strategy - The decision to exit the EMXC may indicate a strategic shift towards broader international diversification, as Adventist Health System simultaneously opened a new $38 million position in the iShares Core MSCI Total International Stock ETF, focusing on developed markets [7][11]. - The EMXC ETF is concentrated in Asian stocks, which have performed well, with top holdings like Taiwan Semiconductor increasing over 46% [10]. Long-term Perspective - The move by Adventist Health System highlights the importance of diversification following strong market rebounds, suggesting that reallocating towards global core exposure could stabilize returns in future market cycles [11].

Group 1 - The surge in gold prices has unexpectedly benefited emerging markets, boosting investor confidence in both gold-producing and purchasing countries [1] - South Africa, home to the world's deepest gold mines, is experiencing its best stock market performance in two decades, with companies like Sibanye Stillwater Ltd., AngloGold Ashanti Plc, and Gold Fields Ltd. seeing stock prices triple [1] - Ghana, Africa's largest gold producer, has had its credit rating upgraded by Moody's, reflecting the positive impact of rising gold prices on national fiscal health [1] Group 2 - The rising gold prices have created a wealth effect for both producing and purchasing countries, encouraging fund managers in emerging markets to maintain a bullish stance [4] - South Africa's strong mining sector is a key reason for the positive outlook on its bonds and stock market, with the FTSE/JSE Africa Index up over 30% in 2025 [4] - The South African rand is nearing a one-year high, and the yield on 10-year government bonds has recently fallen below 9% for the first time in over seven years, indicating improved market sentiment [4][7] Group 3 - Ghana is recovering from an economic crisis and debt default, with its currency appreciating approximately 38% this year, the highest increase globally [8] - Other countries like Poland, Turkey, and Kazakhstan are also increasing their gold reserves, but investors are advised to interpret this trend cautiously [8] - The relationship between rising gold prices and risk assets has reversed due to a weakening dollar and concerns over U.S. economic policies, making emerging markets the beneficiaries [8][9]

Group 1: Core Insights - Global risk appetite has been declining, with significant capital inflows into US fixed income funds and outflows from US small-cap and large-cap growth stocks [1] - The overall trend indicates a global capital rebalancing, with increased investment interest in emerging markets while US equities face outflow pressure [1] Group 2: Market Performance Review - In September 2025, the Hong Kong stock market outperformed globally, with the Hang Seng Tech Index rising by 13.95% and the Hang Seng Index increasing by 7.49%, while markets in Vietnam and Germany saw slight declines [2] - Overall, most global stock markets rose in September, with technology growth stocks leading the performance [2] Group 3: Cross-Border Capital Flows - In September, the southbound trading of the Hong Kong Stock Connect maintained a net buying trend, reaching a year-to-date high in net inflow, primarily into non-essential consumer sectors [3] - Global funds saw significant inflows into fixed income funds and outflows from equity funds, reflecting a decrease in investor risk appetite [3] - QDII-ETF funds experienced substantial net inflows into the Hang Seng Tech sector, while other indices like the Hang Seng Index and Hang Seng China Enterprises Index saw minor outflows [3]

Core Viewpoint - The recent approval of the "E Fund Itaú Bovespa ETF" marks a significant step in the establishment of the China-Brazil ETF connectivity mechanism, allowing Chinese investors to access core Brazilian market assets directly through QDII [1][3] Group 1: Fund Details - E Fund's ETF aims to track the Bovespa Index, which includes major resource companies such as Vale and Petrobras [1] - The ETF will be linked with Itaú Unibanco's ETF products, facilitating direct investment in Brazilian assets for investors [1] Group 2: Market Implications - The approval indicates a growing interest among Chinese fund companies in South American resource cycle assets, following previous expansions into markets like Japan, Hong Kong, and Singapore [1][3] - The Bovespa Index is heavily weighted in mining, energy, and financial sectors, with resource companies accounting for over one-third of its composition, suggesting strong correlation with global commodity prices [3] Group 3: Competitive Landscape - Other fund companies, such as Huaxia Fund, have also attempted to enter the Brazilian ETF market, although their applications may have been withdrawn or delayed [1][3] - The potential for the Brazilian ETF to become a significant tool for Chinese investors in emerging markets is highlighted, especially if regulatory approvals proceed smoothly [3]

Core Insights - The approval of Brazilian ETFs by China Asset Management and E Fund marks a significant step in the interconnection of capital markets between China and Brazil, allowing investors to easily access the Brazilian market [1] Group 1: Brazilian Capital Market Overview - The Brazilian capital market is the largest and most influential financial system in Latin America, offering global investors opportunities to share in its resource dividends and economic growth potential, while also being affected by domestic fiscal policies, interest rate cycles, and political ecology [2] - Brazil is a key emerging market and a member of the BRICS nations, with a significant consumer market and ongoing recovery in domestic demand, alongside increasing digital penetration and growth potential in the service sector [2] - The Ibovespa index, as the most representative index of the Brazilian capital market, covers industries with comparative advantages such as mining and agriculture, with a high weight in financial and energy sectors [2] Group 2: Performance and Investment Potential - The Ibovespa index has shown a strong performance among emerging economies, reflecting Brazil's resilience as the largest economy in Latin America and its role as the "world's granary" [2] - The index has an annualized return of over 12% over the past decade, with a year-to-date return of 21.6% as of the end of September, indicating its ability to capture global capital flows into emerging markets [3] - The index's performance is closely linked to international commodity prices and Chinese economic demand, presenting significant growth potential amidst its volatility [3] Group 3: Previous Collaborations and Future Prospects - Prior collaborations between China and Brazil in capital market interconnectivity include the successful launch of the Bradesco ChinaAMC ChiNext ETF in May, which allows Brazilian investors to access the Chinese market [4] - The establishment of mutual ETF listings between China and Brazil enhances the recognition of these products among overseas investors and strengthens the influence of domestic capital markets [4] - China Asset Management has been a pioneer in domestic ETFs and is actively promoting the mutual connectivity of ETF products globally, having previously launched a mutual ETF project with Japan [4]

Core Insights - Emerging markets investing has experienced an overall positive performance in 2025, with many U.S. investors being underweight in foreign equities, leading to anticipated opportunities abroad [1] Group 1 - The year 2025 began with a favorable outlook for emerging markets, as many market watchers expected significant investment opportunities due to the underweight positioning of U.S. investors in foreign equities [1]

Core Viewpoint - The Federal Reserve's recent interest rate cut signals a shift in global macroeconomic conditions, prompting capital to flow towards emerging markets, particularly benefiting ETFs focused on the Asia-Pacific region [3][6][26]. Group 1: Federal Reserve Actions - The Federal Reserve lowered the federal funds rate target range by 25 basis points to 4.00%-4.25%, marking its first rate cut of 2025 and the first since December 2024 [6][8]. - Market expectations indicate a 75% probability of three additional rate cuts by the end of the year, totaling a 75 basis point reduction [4][6]. - The decision reflects a response to weak employment data, with only 22,000 jobs added in August, significantly below expectations [9]. Group 2: Impact on Emerging Markets - The Fed's rate cut is expected to catalyze a reallocation of global capital, with a historical trend showing that rate cuts typically weaken the relative returns of dollar assets, driving investments towards emerging markets [9]. - The Southeast Asia Technology ETF has seen significant performance, with a 5% increase in September and a 24.2% rise over the past three months, benefiting directly from the Fed's rate cut expectations [11][15]. Group 3: Southeast Asia Technology ETF - The ETF's top holdings include major Southeast Asian internet companies like SEA, Grab, and Goto, which are positioned similarly to Chinese tech giants [13][15]. - The ETF's performance is supported by favorable local policies, such as Indonesia's nearly $1 billion economic stimulus plan and Thailand's interest rate cut to a three-year low of 1.50% [15]. Group 4: Asia-Pacific Select ETF - The Asia-Pacific Select ETF focuses on companies with strong ESG ratings and aims to capture opportunities in technology and cyclical recovery, achieving a 22.9% return over the past year [17][18]. - The ETF's top holdings include major firms like TSMC, Tencent, and Toyota, which provide stable cash flows and strong profitability [19]. Group 5: Market Outlook - The Fed's rate cut marks the beginning of a new phase in the global macro environment, with emerging market ETFs offering significant investment opportunities [26]. - Investors are encouraged to leverage the macroeconomic trend of rate cuts to identify growth opportunities across the Asia-Pacific region, effectively diversifying risks associated with single markets [26].

Market Overview - Chinese concept stocks showed strong performance, with the Nasdaq Golden Dragon China Index rising over 3% [2][4] - Major US stock indices opened higher but displayed mixed results, with the Dow Jones up 0.08%, Nasdaq up 0.01%, and S&P 500 down 0.02% [1][2] Emerging Market Sentiment - HSBC's latest "Emerging Market Investment Intentions Survey" indicates growing optimism among global institutional investors regarding emerging markets, particularly in Asia [4] - Over 61% of surveyed investors believe emerging market stocks will outperform developed markets, an increase from 49% in June [4] - More than half of the respondents expressed the most confidence in the mainland Chinese stock market, significantly up from about one-third in June [4] Chinese Stock Performance - On September 24, A-shares and Hong Kong stocks performed strongly, with the Shanghai Composite Index rising 0.83%, Shenzhen Component Index up 1.8%, and ChiNext Index up 2.28% [4] - The Hang Seng Index increased by 1.37%, while the Hang Seng Tech Index rose by 2.53% [4] Notable Chinese Stocks - Yipeng Energy surged over 15%, while Daqo New Energy, Niu Technologies, Alibaba, and GDS Holdings all rose over 9% [5][6] - Alibaba's Hong Kong shares also increased by over 9%, following a partnership announcement with NVIDIA in the Physical AI sector [6] US Tech Stocks - Among the "Big Seven" tech stocks, Tesla rose over 3% after UBS raised its Q3 delivery forecast from 431,000 to 475,000, a 10% increase [7] - Tesla's stock has seen a month-to-date increase of over 30% [7] - Lithium Americas experienced a significant surge of over 80%, with reports suggesting the US government is seeking to acquire up to 10% of the company [8]

Core Viewpoint - Global institutional investors are increasingly optimistic about the growth prospects of emerging markets, particularly in Asia, as indicated by HSBC's latest "Emerging Market Investment Intentions Survey" [1] Group 1: Investor Sentiment - Over 60% of surveyed institutional investors believe that emerging market stocks will outperform developed markets, an increase from 49% in June [3] - The proportion of investors holding a bullish view on emerging markets has risen from 44% in June to 62%, while bearish sentiment has halved to 7% [3] - More than half of the respondents are optimistic about the prospects of the Chinese stock market, significantly up from about one-third in June [3][4] Group 2: Market Risks and Catalysts - 28% of respondents view "tariffs and trade tensions" as the biggest downside risk for emerging markets, followed by concerns about potential recessions in major economies [5] - 33% of respondents believe that "capital flowing out of the U.S. and being reallocated" is the main catalyst for positive emerging market performance, while 19% cite the recent rebound of the Chinese stock market as a positive factor [5] Group 3: Sustainable Development - The growth momentum of the Chinese economy is seen as a crucial factor influencing the overall direction of emerging markets [6] - 81% of respondents are considering incorporating sustainable development factors into their investment strategies, indicating a long-term trend towards ESG risk management and innovation [6] - The survey collected insights from 100 investors across 100 institutions, managing a total of $423 billion in emerging market assets [6]

Core Viewpoint - Chinese concept stocks have shown strong performance, with the Nasdaq Golden Dragon China Index rising over 3% [3]. Market Performance - On September 24, U.S. stock indices opened higher but showed mixed results, with the Dow Jones up 0.08%, Nasdaq up 0.01%, and S&P 500 down 0.02% [2]. - In the Asian trading session, A-shares and Hong Kong stocks also performed strongly, with the Shanghai Composite Index rising 0.83%, Shenzhen Component Index up 1.8%, ChiNext Index up 2.28%, and the STAR 50 Index up 3.49% [5]. Institutional Investor Sentiment - HSBC's latest "Emerging Markets Investment Intentions Survey" indicates that global institutional investors are increasingly optimistic about emerging markets, particularly in Asia, with over 60% believing emerging market stocks will outperform developed markets, up from 49% in June [5]. - More than half of the surveyed investors expressed the most confidence in the mainland Chinese stock market, significantly higher than about one-third in June, reflecting confidence in China's economic stimulus policies and positive developments in U.S.-China trade relations [5]. Chinese Concept Stocks Performance - Specific Chinese concept stocks saw significant gains, with Yipeng Energy rising over 15%, Daqo New Energy, Niu Technologies, Alibaba, and GDS Holdings rising over 9%, and JD.com and others rising over 7% [6][7]. - Alibaba's Hong Kong stock also rose over 9%, following a major announcement of collaboration with NVIDIA in the Physical AI field during the 2025 Hangzhou Yunqi Conference [7]. Notable Movements in Other Stocks - Among U.S. tech giants, Tesla rose over 3% after UBS raised its Q3 delivery forecast from 431,000 to 475,000 units, marking a 10% increase [8]. - Lithium Americas surged over 80%, with reports indicating the U.S. government is seeking to acquire up to 10% of the company [9].