Second Quarter 2018 Investment Commentary

A confluence of factors combined to drive US equity outperformance in the second quarter. Diverging economic growth and monetary policies, along with fears of a global trade war, resulted in a jittery investment environment outside the United States, particularly in the emerging markets. In our second quarter investment commentary, we provide more detail about how we’ve incorporated some of these shorter-term risks into our outlook for emerging-market (EM) stocks, and more importantly, why we don’t believe they overwhelm the attractive fundamentals, valuations, and potential longer-term returns for EM stocks.