Key Performance Factors

Energy and Materials soared following the US-Israeli attack on Iran and closing of the Strait of Hormuz. Consumer Discretionary lagged on concerns that increased spending on AI will pressure margins. The US market saw weak returns from large cloud-computing and data center companies, while enthusiasm for Asian technology companies boosted EMs. The Fund underperformed, with poor stocks in Communication Services, Consumer Discretionary, and Financials. The Fund’s high-quality growth style also faced a headwind, as shares of high-quality and fast-growing companies lagged the broad market.

Sector Analysis

In Communication Services, shares of Chinese internet company Tencent were pressured by concerns about its ability to profit from its aggressive AI investment. In Consumer Discretionary, shares of Japanese electronics conglomerate Sony Group declined due to rising memory costs and potential margin pressure.

Geographic Analysis

In the US, streaming company Netflix reported solid results that still fell short of market expectations. Alphabet was a bright spot as its dominant position in online search remained resilient. In EMs, Tencent and India’s HDFC Bank detracted. HDFC Bank was hurt by slower deposit growth and the resignation of its chairman; the appointed a well-regarded interim chair.

Key Performance Factors

Energy and Materials soared following the US-Israeli attack on Iran and closing of the Strait of Hormuz. Consumer Discretionary lagged on concerns that increased spending on AI will pressure margins. The US market saw weak returns from large cloud-computing and data center companies, while enthusiasm for Asian technology companies boosted EMs. The Fund underperformed, with poor stocks in Communication Services, Consumer Discretionary, and Financials. The Fund’s high-quality growth style also faced a headwind, as shares of high-quality and fast-growing companies lagged the broad market.

Sector Analysis

In Communication Services, shares of Chinese internet company Tencent were pressured by concerns about its ability to profit from its aggressive AI investment. In Consumer Discretionary, shares of Japanese electronics conglomerate Sony Group declined due to rising memory costs and potential margin pressure.

Geographic Analysis

In the US, streaming company Netflix reported solid results that still fell short of market expectations. Alphabet was a bright spot as its dominant position in online search remained resilient. In EMs, Tencent and India’s HDFC Bank detracted. HDFC Bank was hurt by slower deposit growth and the resignation of its chairman; the appointed a well-regarded interim chair.

Key Performance Factors

Energy and Materials soared following the US-Israeli attack on Iran and closing of the Strait of Hormuz. Consumer Discretionary lagged on concerns that increased spending on AI will pressure margins. The US market saw weak returns from large cloud-computing and data center companies, while enthusiasm for Asian technology companies boosted EMs. The Fund underperformed, with poor stocks in Communication Services, Consumer Discretionary, and Financials. The Fund’s high-quality growth style also faced a headwind, as shares of high-quality and fast-growing companies lagged the broad market.

Sector Analysis

In Communication Services, shares of Chinese internet company Tencent were pressured by concerns about its ability to profit from its aggressive AI investment. In Consumer Discretionary, shares of Japanese electronics conglomerate Sony Group declined due to rising memory costs and potential margin pressure.

Geographic

In the US, streaming company Netflix reported solid results that still fell short of market expectations. Alphabet was a bright spot as its dominant position in online search remained resilient. In EMs, Tencent and India’s HDFC Bank detracted. HDFC Bank was hurt by slower deposit growth and the resignation of its chairman; the bank appointed a well-regarded interim chair.

Key Performance Factors

Energy and Information Technology (IT) were the best performing sectors during the period, spurred by the rising price of oil due to the US-Iran conflict and the continued strength of AI-related companies. Communication Services declined, dragged down by the poor performance of media & entertainment companies. Shares of the fastest-growing companies significantly outperformed, while the highest-quality and most-expensive companies underperformed. The Fund’s emphasis on fast-growing companies boosted its relative performance. The Fund also outpaced the index in IT, Consumer Staples, Emerging Markets, and Europe ex EMU, but lagged in Financials, Consumer Discretionary, and Japan.

Sector Analysis

In IT, the share prices of South Korea’s Samsung Electronics and Taiwan’s Delta Electronics surged due to strong memory chip and power management demand stemming from soaring AI investment. In Financials, India's HDFC Bank detracted as it reported slower deposit growth and the resignation of its Chairman.

Geographic Analysis

UK-based mining Rio Tinto gained after reporting copper-equivalent volume growth and strong cash flows. Shares of Israeli customer-service software provider NICE fell as it raised revenue guidance but forecasted lower full-year profitability due to the costs of its acquisition of Germany’s Cognigy.

Key Performance Factors

Energy and Information Technology (IT) were the best performing sectors during the period, spurred by the rising price of oil due to the US-Iran conflict and the continued strength of AI-related companies. Communication Services declined, dragged down by the poor performance of media & entertainment companies. Shares of the fastest-growing companies significantly outperformed, while the highest-quality and most-expensive companies underperformed. The Fund’s emphasis on fast-growing companies boosted its relative performance. The Fund also outpaced the index in IT, Consumer Staples, Emerging Markets, and Europe ex EMU, but lagged in Financials, Consumer Discretionary, and Japan.

Sector Analysis

In IT, the share prices of South Korea’s Samsung Electronics and Taiwan’s Delta Electronics surged due to strong memory chip and power management demand stemming from soaring AI investment. In Financials, India's HDFC Bank detracted as it reported slower deposit growth and the resignation of its Chairman.

Geographic Analysis

UK-based mining company Rio gained after reporting copper-equivalent volume growth and strong cash flows. Shares of Israeli customer-service software provider NICE fell as it raised revenue guidance but forecasted lower full-year profitability due to the costs of its acquisition of Germany’s Cognigy.

Key Performance Factors

Energy and Information Technology (IT) were the best performing sectors during the period, spurred by the rising price of oil due to the US-Iran conflict and the continued strength of AI-related companies. Communication Services declined, dragged down by the poor performance of media & entertainment companies. Shares of the fastest-growing companies significantly outperformed, while the highest-quality and most-expensive companies underperformed. The Fund’s emphasis on fast-growing companies boosted its relative performance. The Fund also outpaced the index in IT, Consumer Staples, Emerging Markets, and Europe ex EMU, but lagged in Financials, Consumer Discretionary, and Japan.

Sector Analysis

In IT, the share prices of South Korea’s Samsung Electronics and Taiwan’s Delta Electronics surged due to strong memory chip and power management demand stemming from soaring AI investment. In Financials, India's HDFC Bank detracted as it reported slower deposit growth and the resignation of its Chairman.

Geographic Analysis

UK-based mining company Rio Tinto gained after reporting copper-equivalent volume growth and strong cash flows. Shares of Israeli customer-service software provider NICE fell as it raised revenue guidance but forecasted lower full-year profitability due to the costs of its acquisition of Germany’s Cognigy.

Key Performance Factors

Energy was the best performing sector during the period, spurred by the rising price of oil due to the US-Iran conflict. Materials also rose, with mining companies benefiting from higher gold and silver prices. Consumer Discretionary and Communication Services declined, due to the poor performance of consumer durables & apparel and media & entertainment companies, respectively. The Fund’s emphasis on fast-growing companies boosted its relative performance, while the highest-quality and most-expensive companies underperformed. The Fund also outpaced the index in Information Technology (IT), Industrials, and Europe ex EMU, but lagged in Financials, Consumer Discretionary, and Japan.

Sector Analysis

In IT, Samsung Electronics, ASML, and Disco Corp all gained strongly, reflecting broad-based strength of shares across the semiconductor supply chain. In Financials, Dutch payments processor Adyen fell sharply due to disappointing full-year guidance and concerns that AI-driven commerce could erode its competitive edge.

Geographic Analysis

UK-based mining company Rio Tinto gained after reporting copper-equivalent volume growth and strong cash flows. Shares of Israeli customer-service software provider NICE fell as it raised revenue guidance but forecasted lower full-year profitability due to the costs of its acquisition of Germany’s Cognigy.

Key Performance Factors

Energy and Information Technology (IT) were the best-performing sectors due to the rising price of oil following the US-Iran conflict and the continued strength of AI-related companies. Consumer Discretionary and Health Care were dragged down by the poor performance of consumer services and health care equipment & services stocks, respectively. Shares of the fastest-growing companies outperformed, while shares of the highest-quality and most-expensive companies underperformed, which weighed on the Fund’s relative performance. The Fund also lagged the index in IT, Materials, the European Monetary Union, and Japan while outperforming in Industrials and Pacific ex Japan.

Sector Analysis

Japanese software-testing business Shift detracted after the company’s management said lower utilization of its software testers was hurting operating margins. Shares of Senior, a UK-based supplier of thermal-management and fluid-conveyance systems, rose after receiving takeover offers.

Geographic Analysis

Shares of German real estate listings platform Scout24 declined as investors worried about the potential for AI to disrupt its business. Hong Kong-based semiconductor manufacturer ASM Pacific Technology reported strong quarterly results, boosted by AI-related infrastructure demand.

Key Performance Factors

Energy and Information Technology (IT) were the best-performing sectors due to the rising price of oil following the US-Iran conflict and the continued strength of AI-related companies. Consumer Discretionary and Health Care were dragged down by the poor performance of consumer services and health care equipment & services stocks, respectively. Shares of the fastest-growing companies outperformed, while shares of the highest-quality and most-expensive companies underperformed, which weighed on the Fund’s relative performance. The Fund also lagged the index in IT, Materials, the European Monetary Union, and Japan while outperforming in Industrials and Pacific ex Japan.

Sector Analysis

Japanese software-testing business Shift detracted after the company’s management said lower utilization of its software testers was hurting operating margins. Shares of Senior, a UK-based supplier of thermal-management and fluid-conveyance systems, rose after receiving takeover offers.

Geographic Analysis

Shares of German real estate listings platform Scout24 declined as investors worried about the potential for AI to disrupt its business. Hong Kong-based semiconductor manufacturer ASM Pacific Technology reported strong quarterly results, boosted by AI-related infrastructure demand.

Key Performance Factors

Energy and Information Technology (IT) were the best-performing sectors due to the rising price of oil following the US-Iran conflict and the continued strength of AI-related companies. Consumer Discretionary and Health Care were dragged down by the poor performance of consumer services and health care equipment & services stocks, respectively. Shares of the fastest-growing companies outperformed, while shares of the highest-quality and most-expensive companies underperformed, which weighed on the Fund’s relative performance. The Fund also lagged the index in IT, Materials, the European Monetary Union, and Japan while outperforming in Industrials and Pacific ex Japan.

Sector Analysis

Japanese software-testing business Shift detracted after the company’s management said lower utilization of its software testers was hurting operating margins. Shares of Senior, a UK-based supplier of thermal-management and fluid-conveyance systems, rose after receiving takeover offers.

Geographic Analysis

Shares of German real estate listings platform Scout24 declined as investors worried about the potential for AI to disrupt its business. Hong Kong-based semiconductor manufacturer ASM Pacific Technology reported strong quarterly results, boosted by AI-related infrastructure demand.

Key Performance Factors

Emerging markets rose despite dipping sharply in March in reaction to the US-Israel attack on Iran. Information Technology (IT) surged thanks to the enthusiasm for AI-related semiconductor and hardware stocks in Asia. Energy benefited from the oil price spike caused by the Middle East conflict. Communication Services and Consumer Discretionary stocks lagged. The Fund outperformed in IT and Energy, mitigating underperformance in Consumer Discretionary. The Fund’s overweight in high-quality companies was also helpful.

Sector Analysis

In IT, shares of Taiwan’s Aspeed surged on booming demand for its baseboard management chips used in AI servers. In Consumer Discretionary, Indian auto manufacturer Maruti Suzuki reported operating margins that fell short of expectations due to rising commodity prices and the temporary cost of ramping up new manufacturing facilities that should bolster the company’s growth.

Geographical Analysis

Aspeed and Delta Electronics in Taiwan both benefited from the buildout of AI infrastructure. Delta saw strong shipments for its liquid-to-air cooling systems and server power supplies. Shares of India’s HDFC Bank were pressured by slower deposit growth and the resignation of its Chairman; the bank quickly appointed a well-regarded interim chair.

Key Performance Factors

Emerging markets rose despite dipping sharply in March in reaction to the US-Israel attack on Iran. Information Technology (IT) surged thanks to the enthusiasm for AI-related semiconductor and hardware stocks in Asia. Energy benefited from the oil price spike caused by the Middle East conflict. Communication Services and Consumer Discretionary stocks lagged. The Fund outperformed in IT and Energy, mitigating underperformance in Consumer Discretionary. The Fund’s overweight in high-quality companies was also helpful.

Sector Analysis

In IT, shares of Taiwan’s Aspeed surged on booming demand for its baseboard management chips used in AI servers. In Consumer Discretionary, Indian auto manufacturer Maruti Suzuki reported operating margins that fell short of expectations due to rising commodity prices and the temporary cost of ramping up new manufacturing facilities that should bolster the company’s growth.

Geographical Analysis

Aspeed and Delta Electronics in Taiwan both benefited from the buildout of AI infrastructure. Delta saw strong shipments for its liquid-to-air cooling systems and server power supplies. Shares of India’s HDFC Bank were pressured by slower deposit growth and the resignation of its Chairman; the bank quickly appointed a well-regarded interim chair.

Key Performance Factors

Frontier Emerging Markets rose despite dipping sharply in March in reaction to the US-Israel attack on Iran. Energy and Real Estate were the top-performing sectors. Europe and Latin America outperformed while Asian markets were hurt by the closing of the Strait of Hormuz. The Fund lagged the index, with weak holdings in Real Estate and Consumer Discretionary. Vietnam and Indonesia also detracted. European holdings helped relative returns.

Sector Analysis

Extreme weather and inflation hurt two Philippine holdings. Real Estate company SM Prime Holdings reported weak attendance at its malls and a decline in residential construction revenue. Jollibee Foods in Consumer Discretionary experienced weak revenue growth and rising input costs. In IT, shares of Thailand-based optical communications equipment manufacturer Fabrinet rose, supported by demand for components used in cloud computing, AI, and video streaming.

Geographic Analysis

Jollibee was the main detractor in the Philippines. In Vietnam, IT services business FPT declined due to concerns over the competitive threat from AI. Shares of Kazak uranium producer Kazatomprom were buoyed by strong prices and the prospect for increased nuclear power demand for AI data centers.

Key Performance Factors

Frontier Emerging Markets rose despite dipping sharply in March in reaction to the US-Israel attack on Iran. Energy and Real Estate were the top-performing sectors. Europe and Latin America outperformed while Asian markets were hurt by the closing of the Strait of Hormuz. The Fund lagged the index, with weak holdings in Real Estate and Consumer Discretionary. Vietnam and Indonesia also detracted. European holdings helped relative returns.

Sector Analysis

Extreme weather and inflation hurt two Philippine holdings. Real Estate company SM Prime Holdings reported weak attendance at its malls and a decline in residential construction revenue. Jollibee Foods in Consumer Discretionary experienced weak revenue growth and rising input costs. In IT, shares of Thailand-based optical communications equipment manufacturer Fabrinet rose, supported by demand for components used in cloud computing, AI, and video streaming.

Geographic Analysis

Jollibee was the main detractor in the Philippines. In Vietnam, IT services business FPT declined due to concerns over the competitive threat from AI. Shares of Kazak uranium producer Kazatomprom were buoyed by strong prices and the prospect for increased nuclear power demand for AI data centers.

Key Performance Factors

Frontier Emerging Markets rose despite dipping sharply in March in reaction to the US-Israel attack on Iran. Energy and Real Estate were the top-performing sectors. Europe and Latin America outperformed while Asian markets were hurt by the closing of the Strait of Hormuz. The Fund lagged the index, with weak holdings in Real Estate and Consumer Discretionary. Vietnam and Indonesia also detracted. European holdings helped relative returns.

Sector Analysis

Extreme weather and inflation hurt two Philippine holdings. Real Estate company SM Prime Holdings reported weak attendance at its malls and a decline in residential construction revenue. Jollibee Foods in Consumer Discretionary experienced weak revenue growth and rising input costs. In IT, shares of Thailand-based optical communications equipment manufacturer Fabrinet rose, supported by demand for components used in cloud computing, AI, and video streaming.

Geographic Analysis

Jollibee was the main detractor in the Philippines. In Vietnam, IT services business FPT declined due to concerns over the competitive threat from AI. Shares of Kazak uranium producer Kazatomprom were buoyed by strong prices and the prospect for increased nuclear power demand for AI data centers.