Market Environment - Global equities experienced an upward trend during the quarter, with 10 out of 11 GICS sectors showing positive returns. Information technology and financials were the primary contributors, while consumer staples were the only detractor [2] - The U.S. was the main driver of positive market momentum, followed by Japan, while Denmark and Germany slightly detracted from overall performance [2] Portfolio Performance - The portfolio achieved a net return of 1.83% for the reporting period, compared to the MSCI World Index's return of 7.27% [3] Top Contributors - Alibaba Group (BABA) saw significant stock price appreciation due to strong earnings reflecting rapid growth in Chinese AI and healthy revenue growth in its Cloud segment, with expectations for continued momentum [4] - Alphabet (GOOG)(GOOGL) benefited from a favorable ruling in an antitrust case and exceeded second-quarter earnings expectations, with innovations in Google Search driving engagement and revenue [5] - IQVIA Holdings (IQV) experienced stock price appreciation after solid second-quarter results, indicating growth potential in its technology and analytics solutions segment [6] Top Detractors - Charter Communications (CHTR) faced a decline in stock price due to weak second-quarter earnings and a faster-than-expected drop in broadband subscriptions, although ARPU growth accelerated [7] - Centene (CNC) saw its stock price decline after withdrawing and then lowering its 2025 earnings per share guidance due to cost pressures in its Medicaid and Marketplace businesses [8] - CNH Industrial (CNH) reported weak results and reaffirmed guidance amidst challenging conditions, with management expecting a rebound in 2025 and significant margin expansion potential [9] Portfolio Positioning - The company initiated a position in Dassault Systèmes, a French software firm specializing in virtual twin technology, which is expected to drive innovation and cost reduction, despite a nearly 40% decline in share price from its peak [10] Outlook - The company notes a shift in market dynamics, with a decline in U.S. growth/momentum stocks and improved fundamentals in European equities, suggesting a potential for continued investor interest in this region [13]

Core Insights - The Fund underperformed the MSCI World ex USA Index for the quarter but has outperformed the benchmark since inception [5] - Consumer discretionary and materials sectors were the largest contributors to performance, while industrials and communication services were the largest detractors [5] - Geographically, the portfolio is heavily weighted towards Europe ex U.K. (68.4%), followed by the U.K. (11.5%) and Asia ex Japan (9.3%) [5] Performance Analysis - Kering was the top contributor during the quarter, driven by leadership changes and improving revenue trends [7] - CNH Industrial was the top detractor, facing weak results and soft demand, particularly in the U.S., but management expects a rebound in 2025 [8] Portfolio Activity - Six new positions were added to the Fund, while nine were exited during the quarter [9] - New purchases included Bunzl, which is expected to return to stable growth despite recent execution issues [10] - Dassault Systèmes, a leader in virtual twin technology, is viewed as a high-quality investment opportunity despite a nearly 40% decline in share price [11] Company Highlights - FEMSA, a diversified Latin American conglomerate, is well-positioned for growth through strategic divestments and share buybacks [12] - Hexagon has upgraded its management team and is expected to see improvements in return on capital employed and cash flow [13] - Siemens Healthineers is positioned for profitable growth in medical technology, with a favorable product cycle and turnaround in its diagnostics business [16] Investment Returns - The Fund's average annualized total returns show strong performance across various time frames, with the Institutional Class returning 26.51% year-to-date [18]